MEXICO'S 

DILEMMA 

CARLWACKERMAN 


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MEXICO.  NiRTES  14  DH60STODE  1917 


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MEXICO'S  DILEMMA 
CARL  W.  ACKERMAN 


-rOONIST's   VIEW   OF    SENOR   CABRERA 
OST  DOMINANT  CIVILIAN  OFFICIALS     ' 


MEXICO'S 
DILEMMA 


BY 

CARL  W.  ACKERMAN 

AUTHOR  OF  "GERMANY,  THE  NEXT  REPUBLIC?  " 


ILLUSTRATED 


COPYRIGHT,  1918, 
BY  GEORGE  H.  DORAN  COMPANY 


MPANY 

'\L  SCIENCE 


Bancroft  Library 

3    3X  (0 


INTRODUCTION 

Mexico's  Dilemma  has  three  horns. 

They  are:  1.  Financial  ruin  of  Mexico  and 
internal  disorders  unless  a  loan  is  obtained.  2. 
The  possibility  of  subjugation  to  German  influ- 
ence with  all  of  its  liability  for  external  strife. 
3.  Co-operation  with  the  United  States,  England, 
France  and  America. 

What  will  Mexico  do? 

The  answer  is  one  which  future  events  will  de- 
termine. In  this  book  the  author  has  tried  to  tell 
what  forces  and  influences  are  sharpening  each  of 
the  three  horns.  There  are  bandits,  disloyal  Mex- 
icans, ambitious  officials,  patriotic  citizens,  honest 
business  men,  Teutonic  intriguers,  spies,  propa- 
gandists, diplomats,  millionaires,  army  officers 
and  I.  W.  W.  firebrands  at  work.  Is  it  any  won- 
der, then,  that  Mexico  finds  herself  in  such  a 
Dilemma! 

Mexico  has  always  been  a  home  and  workshop 
for  foreigners.  Several  thousand  years  ago  the 
Chinese  settled  in  that  country  and,  judging  from 
the  relics  which  are  found  to-day,  in  and  about 
Mexico  City,  Chinese  civilisation  flourished  there 
for  a  few  hundred  years.  Terra  cotta  relics  are 
found  showing  an  unmistakable  Mongolian  type 


COPYRIGHT,  1918, 
BY  GEORGE  H.  DORAN  COMPANY 


\L  SCIENCE 


.TOONIST  S  VIEW   OF    SENOR   CABRERA, 
OST  DOMINANT  CIVILIAN  OFFICIALS 


Bancroft  Library 

3  Sx  £? 


INTRODUCTION 

Mexico's  Dilemma  has  three  horns. 

They  are:  1.  Financial  ruin  of  Mexico  and 
internal  disorders  unless  a  loan  is  obtained.  2. 
The  possibility  of  subjugation  to  German  influ- 
ence with  all  of  its  liability  for  external  strife. 
3.  Co-operation  with  the  United  States,  England, 
France  and  America. 

What  will  Mexico  do? 

The  answer  is  one  which  future  events  will  de- 
termine. In  this  book  the  author  has  tried  to  tell 
what  forces  and  influences  are  sharpening  each  of 
the  three  horns.  There  are  bandits,  disloyal  Mex- 
icans, ambitious  officials,  patriotic  citizens,  honest 
business  men,  Teutonic  intriguers,  spies,  propa- 
gandists, diplomats,  millionaires,  army  officers 
and  I.  W.  W.  firebrands  at  work.  Is  it  any  won- 
der, then,  that  Mexico  finds  herself  in  such  a 
Dilemma? 

Mexico  has  always  been  a  home  and  workshop 
for  foreigners.  Several  thousand  years  ago  the 
Chinese  settled  in  that  country  and,  judging  from 
the  relics  which  are  found  to-day,  in  and  about 
Mexico  City,  Chinese  civilisation  flourished  there 
for  a  few  hundred  years.  Terra  cotta  relics  are 
found  showing  an  unmistakable  Mongolian  type 


vi  INTRODUCTION 

of  face,  and,  because  a  large  number  of  art  ob- 
jects similar  to  those  found  in  China  have  been 
unearthed,  archeologists  conclude  that  Mexico  was 
once  the  foreign  colony  of  the  Chinese. 

After  the  Chinese  civilisation  disappeared  the 
Aztec  and  pre-Aztec  Indians  dominated  the  land. 
A  few  hundred  years  ago  the  Spaniards  landed 
and  Mexico  passed  through  a  period  of  conquest 
which  ended  with  the  execution  of  the  Austrian, 
Emperor  Maximilian.  And  to-day,  in  Monteif!y 
is  preserved  the  rifle  which  was  used  at  this  ex- 
ecution, preserved  even  by  the  Rebels  during  the 
revolutions. 

A  few  decades  ago  English,  French  and  Ameri- 
can capitalists  went  to  Mexico  to  develop  the 
wonderfully  rich  resources,  and  Mexico  under 
President  Porfirio  Diaz  became  a  great,  inter- 
nationally respected  nation. 

The  revolution  which  overthrew  Diaz  drove 
thousands  of  these  foreigners  from  the  country, 
and  the  immigration  of  Germans  and  Austrians, 
which  had  started  earlier,  increased  until  to-day 
the  Teuton  strength  is  so  great  that  Mexican 
politics  is  interwoven  with  German  intrigue. 
Where  a  few  years  ago  The  Mexican  Herald,  an 
English  language  newspaper,  had  a  wide  circula- 
tion and  commanded  the  respect  and  attention  of 
all  foreigners,  there  is  to-day  a  Deutsche  Zeitung 
von  Mexico. 

Germany  is  active  in  Mexico,  honestly  and  dis- 
honestly. The  character  of  many  of  the  German 


INTRODUCTION  vii 

citizens  there  cannot  be  attacked  and  their  hon- 
esty cannot  be  questioned,  but,  as  is  the  case  in 
the  United  States  and  in  all  countries  where  the 
German  Government  intriguers  have  worked,  all 
Germans  in  Mexico  are  bearing  the  burdens  of  a 
corrupt,  dishonest,  deceitful  government  in  Ber- 
lin. Most  of  the  things  which  the  Germans  are 
doing  there,  both  against  the  United  States  and 
against  Mexico  itself,  are  done  at  the  direction 
of  Berlin.  Who  would  have  expected  Mexico  to 
think  of  invading  the  United  States  to  "get 
back"  American  territory  until  it  was  suggested 
to  the  German  Minister  in  Mexico  City  by  Dr. 
Alfred  Zimmermann,  former  Secretary  of  State? 
What  honest,  intelligent  Mexican  favours  war 
with  the  United  States  when  there  is  nothing  to 
gain  for  Mexico  except  flattery  from  Berlin? 
What  capable  Mexican  business  man,  or  govern- 
ment official,  favours  labour  riots  at  Tampico  to 
cut  off  the  oil  supply  which  is  bringing  millions 
of  dollars  to  the  Mexican  Treasury?  What  is 
there  for  Mexico  to  gain  if  the  oil  wells  and 
mines  are  destroyed?  Mexico  loses  by  such  things  V 
and  Berlin  gains. 

When  I  returned  from  Germany  to  America  in 
March,  1917, 1  found  so  many  people  asking  what 
the  Germans  were  doing  in  Mexico  that  I  pro- 
posed to  the  Editor  of  The  Saturday  Evening 
Post  that  I  go  to  that  country  for  the  purpose  of 
making  an  investigation.  It  seemed  to  me  that 
public  opinion  in  the  United  States  was  divided; 


viii  INTRODUCTION 

that  some  people  thought  the  German  activity  in 
Mexico  was  no  greater  than,  if  as  great  as,  that  in 
the  United  States,  while  others  believed  it  much 
more  portentous. 

In  July,  having  my  two  passports  in  order,  as 
both  an  American  and  a  Mexican  passport  were 
needed,  I  left  New  York  City  for  San  Antonio, 
Texas,  where  I  met  and  talked  with  a  large  num- 
ber of  Mexicans,  including  Mr.  Sam  Belden,  the 
attorney  for  the  Mexican  Consul;  Senor  don 
Manuel  Amaya,  Official  Introducer  of  Ambassa- 
dors in  President  Carranza's  cabinet;  General 
Salinas  and  a  Mexican  physician  from  Monterey. 
I  remained  at  San  Antonio  until  Ambassador 
Henry  Prather  Fletcher  and  Mrs.  Fletcher  ar- 
rived en  route  to  Mexico  City.  Upon  the  invita- 
tion of  Senor  Amaya  I  travelled  on  the  special 
train  which  took  Mr.  Fletcher  to  the  Mexican 
capital. 

I  crossed  the  International  Bridge  with  the 
official  party  and  drove  through  the  dusty  streets 
of  Nuevo  Laredo  to  the  railway  siding  where  the 
train  was  waiting.  That  evening,  after  consider- 
able delay — bandits  had  destroyed  a  bridge  just 
outside  the  city — reached  Monterey,  in  company 
with  Mr.  Randolph  Robertson,  Acting  Consul- 
General  for  the  United  States,  and  several  Mex- 
icans, including  a  Captain  attached  to  the  National 
Palace. 

The  next  day  the  train  stopped  at  San  Luis 
Potosi.  Ambassador  and  Mrs.  Fletcher  were  en- 


INTRODUCTION  ix 

terteined  by  General  Barragan,  the  Governor  of 
the  state,  and  his  staff.  At  the  banquet  I  sat  be- 
side Senor  Montezuma,  a  direct  descendant  of  the 
famous  Indian  chief.  From  San  Luis  Potosi  to 
Mexico  City  we  passed  through  a  beautiful 
stretch  of  country  under  armed  escort. 

In  Mexico  City  I  met  members  of  the  cabinet, 
Mexican  Generals,  members  of  the  Chamber  of 
Deputies,  American  and  English  business  men, 
bankers,  newspapermen  and  others.  I  employed 
a  young  Mexican  student  from  the  University  of 
Texas  as  an  interpreter,  journeyed  about  the  city 
and  the  suburbs,  and  studied,  in  every  way  possi- 
ble for  me,  the  social  and  political  conditions  in 
the  capital  of  the  Kepublic. 

Before  I  left  the  United  States  I  had  encoun- 
tered two  classes  of  citizens,  those  who  had  faith 
in  the  possibilities  for  good  of  the  Carranza  Gov- 
ernment and  those  who  violently  opposed  this 
government.  In  Mexico  I  found  quite  the  same 
situation.  Not  only  were  the  foreigners  divided 
in  opinion  but  the  Mexicans  themselves,  though 
here  those  opposing  the  government  were  not  as 
pronounced  in  the  expression  of  their  judgment 
for  fear  of  Article  33  in  the  Mexican  Constitution. 
This  article  reads : 

" Foreigners  are  those  who  do  not  possess  the 
qualifications  prescribed  in  Article  30.  They 
shall  be  entitled  to  the  rights  granted  by  Chapter 
I,  Title  I  of  the  present  constitution ;  but  the  ex- 


x  INTRODUCTION 

ecutive  shall  have  the  exclusive  right  to  expel 
from  the  Republic  forthwith  and  without  judicial 
process,  any  foreigner  whose  presence  he  may 
deem  inexpedient. 

"No  foreigner  shall  meddle  in  any  way  what- 
soever in  the  political  affairs  of  the  country." 

From  this  section  developed  the  phrase  "to  be 
Thirty-threed, "  meaning  to  be  exiled  without 
trial  or  hearing,  from  Mexico. 

From  Monterey  I  travelled  to  Tampico  on  the 
regular  morning  train  which  was  crowded  with 
Mexicans,  Indians  and  Germans  long  before  the 
hour  of  departure.  Most  of  the  Germans  left  at 
towns  along  the  line,  but  a  few  continued  to  the 
great  oil  port. 

In  Tampico  I  had  the  assistance  and  the  same 
cordial  co-operation  from  the  Americans,  espe- 
cially the  representatives  of  the  oil  companies, 
that  I  had  had  in  Mexico  City.  As  I  look  back 
now  upon  my  contact  with  the  Americans  in  Mex- 
ico they  appear  to  me  to  be,  with  only  one  excep- 
tion that  I  can  recall,  all  active,  energetic  business 
men,  who,  far  from  being  in  that  country  to  ' ' rob" 
it  are  there  working  and  striving  for  the  same 
things  that  business  men,  bankers,  clerks  and 
labourers  honestly  strive  for  in  the  United  States. 

Early  one  September  morning  I  boarded  a  large 
oil  tanker  in  Tampico  harbour,  crossed  the  Gulf 
of  Mexico  to  Sabine  Pass,  Texas,  when  that  great 
body  of  water  was  as  quiet  and  smooth  as  a  small 


INTRODUCTION  xi 

lake.  Arriving  in  Texas,  and  looking  back  upon 
my  experiences  in  Mexico,  I  felt  that  I  had  had  an 
opportunity  of  studying  conditions  at  first  hand, 
not,  indeed,  as  they  were  during  the  revolution, 
but  as  they  were  then.  Nothing,  though,  that  I 
know  of  changes  like  Mexico.  What  one  day  is 
the  situation  the  next  day  may  not  exist  at  all. 

In  the  first  article  which  I  wrote  for  The  Satur- 
day Evening  Post  I  spoke  of  the  two  policies 
which  faced  Mexico :  either  Mexico  could  join  the 
United  States  and  the  Allies,  at  least  to  the  ex- 
tent of  breaking  diplomatic  relations  with  Berlin, 
or  Mexico  might  stay  out  of  this  league  of  nations 
and  by  so  doing  give  the  German  propagandists 
further  opportunity  of  creating  hatred,  suspicionx 
and  fear  between  Mexico  and  the  United  States.! 
In  case  of  the  latter  event,  should  it  continue' 
long  enough,  no  one  can  be  sure  that  Mexico,  under 
German  influence,  may  not  some  day  be  an  enemy  ' 
of  the  United  States. 

That  is  what  I  wrote  in  July,  1917.  By  mid- 
November,  the  former  Associated  Press  corre- 
spondent in  Mexico  City  had  reached  New  York. 
A  letter  from  Mexico  stated  that  he  was  exiled 
because  he  wrote  a  series  of  articles  for  the 
"A.  P.,"  telling  of  the  campaign  which  the  Ger- 
mans were  conducting,  in  co-operation  with  the 
bandit  leaders,  to  prevent  the  Carranza  govern- 
ment from  breaking  with  Berlin.  The  letter, 
which  I  received,  said  the  correspondent,  whom  I 
had  met  while  I  was  there,  was  tapped  on  the 


xii  INTRODUCTION 

shoulder  one  night  by  a  secret  service  agent  and 
told  to  leave  the  next  morning  for  the  United 
States. 

So  it  is  in  Mexico.  Zimmermann  is  not  alone 
in  his  intrigues. 

With  the  sincere  hope  that  this  book  will  help 
Americans  to  understand  Mexico  as  it  is  I  sub- 
mit it  to  the  reading  public.  Everything,  includ- 
ing future  peace  between  the  two  nations,  Mexico 
and  the  United  States,  and  their  mutual  pros- 
perity, depends  upon  our  having  a  full  under- 
standing of  the  situation.  This  book  does  not  pre- 
tend to  contain  all  there  is  to  be  known  about 
Mexico  to-day  but  the  author  believes  it  to  pre- 
sent a  true  account  of  conditions  and  politics  in 
Mexico  at  the  time  of  its  writing. 

I  have  employed  in  this  book  the  major  portion 
of  five  articles  written  for  The  Saturday  Evening 
Post  to  which  I  have  added  considerable  new  ma- 
terial. I  am  indebted  to  so  many  Americans  and 
Mexicans  for  assistance  and  information,  some 
whose  names  might  be  mentioned,  others  whose 
names  cannot  be  given,  that  I  welcome  this  oppor- 
tunity to  thank  them  all. 

C.  W.  A. 


Bancroft  Library 
CONTENTS 


PAGE 

INTRODUCTION     ...........        v 


THE   ZlMMERMANN   NOTE 
CHAPTER 

I.  A  BIRD'S-EYE  VIEW       .......  19 

II.  THE  MEXICAN  PUZZLE  .......  24 

III.  REBELS  AND  REVOLUTIONS       .....  48 

IV.  GERMANY'S  ALLY  AT  TAMPICO       ....  68 
V.  THE  LAST  SPY  OFFENSIVE  ......  98 

VI.  RISING  OR  SETTING  SUN  IN  MEXICO  .     .     .  117 

VII.  THE  FUTURE  ......     ....  136 

APPENDIX      ............  141 

A.  FINANCIAL  BILLS      ........  143 

B.  THE  NEW  MEXICAN  CONSTITUTION  .     .     .  153 

C.  MEXICAN  RAILWAYS      .......  264 

D.  THE  AMERICAN  CHAMBER  OF  COMMERCE     .  273 

E.  THE  LAST  MEXICAN  ELECTION  279 


ziii 


ILLUSTRATIONS 

A  MEXICAN  CARTOONIST'S  VIEW  OF  SENOR  CABRERA 

Frontispiece 

PAGE 

MEXICAN  VILLAGERS  WHO  TURNED  OUT  TO  SEE 

SENOR  FLETCHER 28 

AMBASSADOR  FLETCHER'S  MILITARY  ESCORT      .     .  28 

COVER  FOR  THE  GERMAN  NEWSPAPER  OF  MEXICO  36 

THIS  WAS  AT  ONE  TIME  A  BEAUTIFUL  RESIDENCE  52 

THE  FAMOUS  " SADDLE  MOUNTAIN"  OF  MONTEREY  52 
THE  U.  S.  WARSHIPS  AT  ANCHOR  IN  TAMPICO  HARBOR     70 

AN  OIL  GUSHER  AT  TAMPICO 70 

THE  GUSHER  OF  THE  CERRO  AZUL  OIL  WELL — 600 

FEET  HIGH 80 

ANOTHER  VIEW  OF  GERMANY'S  LEADERS       .     .         .  100 

COVER  CARTOON  OF  AMBASSADOR  FLETCHER      .     .  112 

TERRA  COTTA  HEADS  FOUND  BY  PROF.  NIVEN  .      .  122 

AN  AZTEC  FAMILY  TREE 122 

PROFESSOR  WILLIAM  NIVEN 132 

LIST  OF  THE  PRESIDENTS  OF  MEXICO,  GEN.  PORFIRIO 

DIAZ  TO  Lie.  FRANCISCO  GARBAJAL      ....  162 

XV 


xvi  ILLUSTRATIONS 

LIST  OF  PRESIDENTS  OF  MEXICO,  EULALIO  GUTIER- 
BEZ  TO  C.  VENUSTIANO  CARRANZA 178 

THE  RUINED  RAILWAY  DEPOT  AND  FREIGHT  CARS 
AT  MONTEREY 266 

A  TYPICAL  MEXICAN  RAILWAY  TRAIN  266 


MEXICO'S  DILEMMA 


THE  ZIMMERMANN  NOTE 

BERLIN,  JANUARY  19,  1917. 

To  His  EXCELLENCY,  THE  IMPERIAL 
GERMAN  MINISTER  TO  MEXICO. 

On  the  first  of  February  we  intend  to  begin  unre- 
stricted submarine  warfare.  In  spite  of  this,  it  is  our  in- 
tention to  endeavour  to  keep  the  United  States  of  Amer- 
ica neutral. 

If  this  attempt  is  not  successful,  we  propose  an  alli- 
ance on  the  following  basis  with  Mexico:  That  we  shall 
make  war  together  and  together  make  peace.  We  shall 
give  general  financial  support,  and  it  is  understood  that 
Mexico  is  to  reconquer  the  lost  territory  in  New  Mex- 
ico, Texas  and  Arizona.  The  details  are  left  to  you  for 
settlement. 

You  are  instructed  to  inform  the  President  of  Mex- 
ico of  the  above  in  the  greatest  confidence  as  soon  as  it 
is  certain  that  there  will  be  an  outbreak  of  war  with  the 
United  States,  and  suggest  that  the  President  of  Mexico, 
on  his  own  initiative,  should  communicate  with  Japan 
suggesting  adherence  at  once  to  this  plan.  At  the  same 
time  offer  to  mediate  between  Germany  and  Japan. 

Please  call  to  the  attention  of  the  President  of  Mexico 
that  the  employment  of  ruthless  submarine  warfare  now 
promises  to  compel  England  to  make  peace  within  a  few 
months* 

ZIMMERMANN. 


MEXICO'S  DILEMMA 


CHAPTER  I 
A  BIRD'S-EYE  VIEW 

PEESIDENT  LINCOLN'S  words  on  Mexico, 
sent  in  the  form  of  instructions  to  the 
United  States  Minister  in  Mexico  City,  true 
as  they  must  have  been  more  than  fifty  years  ago, 
are  just  as  true  to-day.  "For  a  few  years  past  the 
condition  of  Mexico  has  been  so  unsettled  as  to 
raise  the  question  on  both  sides  of  the  Atlantic 
whether  the  time  has  not  come  when  some  foreign 
power  ought,  in  the  general  interest  of  society, 
to  intervene,  to  establish  a  protectorate  or  some 
other  form  of  government  in  that  country  and 
guarantee  its  continuance  there, "  wrote  the  Presi- 
dent. He  continued: 

"You  will  not  fail  to  assure  the  Government  of 
Mexico  that  the  President  neither  has,  nor  can 
ever  have,  any  sympathy  with  such  designs,  in 
whatever  quarter  they  may  arise  or  whatever 
character  they  may  take  on.  .  .  . 

1 1  The  President  never  for  a  moment  doubts  that 

19 


20  MEXICO'S  DILEMMA 

the  republican  system  is  to  pass  safely  througl 
all  ordeals  and  prove  a  permanent  success  in  our 
own  country,  and  so  to  be  recommended  to  adop- 
tion by  all  other  nations. 

"But  he  thinks,  also,  that  the  system  every- 
where has  to  make  its  way  painfully  through  diffi- 
culties and  embarrassments  which  result  from 
the  action  of  antagonistic^!  elements  which  are  a 
legacy  of  former  times  and  very  different  institu- 
tions. 

"The  President  is  hopeful  of  the  ultimate  tri- 
umph of  this  system  over  all  obstacles,  as  well  in 
regard  to  Mexico  as  in  regard  to  every  other 
American  State ;  but  he  feels  that  those  States  are 
nevertheless  justly  entitled  to  a  greater  forbear- 
ance and  more  generous  sympathies  from  the 
Government  and  people  of  the  United  States 
than  they  are  likely  to  receive  in  any  other 
quarter.  .  .  . 

"The  President  trusts  that  your  mission,  mani- 
festing these  sentiments,  will  reassure  the  Gov- 
ernment of  Mexico  of  his  best  disposition  to 
favour  their  commerce  and  their  internal  im- 
provements. 

"I  find  the  archives  here  full  of  complaints 
against  the  Mexican  Government  for  violation  of 
contracts  and  spoliation  and  cruelties  practiced 
against  American  citizens.  It  is  not  the  Presi- 
dent's intention  to  send  forward  such  claims  at 
the  present  moment.  He  willingly  defers  the  per- 
formance of  a  duty,  which  at  any  time  would 


A  BIRD'S-EYE  VIEW  21 

seem  ungracious,  until  the  incoming  administra- 
tion in  Mexico  shall  have  had  time,  if  possible, 
to  cement  its  authority. " 

How  many  Americans  there  are  to-day  who  feel 
as  apprehensive  as  did  President  Lincoln!  How 
many  Americans  ask  to-day  whether  the  United 
States  may  not  have  to  intervene  in  Mexico,  after 
all,  to  help  establish  peace  and  order! 

In  his  International  Law  Digest,  Professor 
John  Bassett  Moore,  former  Counsellor  of  the 
State  Department  in  Washington,  writes: 

"On  November  28,  1876,  General  Porfirio  Diaz 
issued  a  proclamation  announcing  himself  pro- 
visional president  of  the  Republic  of  Mexico, 
under  the  Plan  of  Tuxtepec.  On  January  19, 
1877,  intelligence  having  been  received  at  Wash- 
ington of  the  defeat  of  the  forces  of  the  rival 
claimants  Secretary  of  State  Fish  suggested  that 
if  this  should  be  confirmed  by  similar  tidings  re- 
ceived at  the  City  of  Mexico,  General  Diaz  *  would 
have  no  important  adversary  in  arms  and  might 
be  regarded  as  the  actual  ruler  of  the  country.1 
The  question  of  recognising  his  government  was 
under  the  circumstances  left  to  the  discretion  of 
the  Ajnerican  Minister.  In  view,  however,  of  the 
unsettled  state  of  affairs  in  Mexico,  and  especially 
of  the  existence  of  controversies  between  the  two 
countries  growing  out  of  troubles  on  the  Bio 
Grande  frontier,  it  was  afterwards  determined 


22  MEXICO'S  DILEMMA 

that  the  Government  of  the  United  States,  al- 
though it  was  '  accustomed  to  accept  and  recognise 
the  results  of  a  popular  choice  in  Mexico/  would 
in  this  particular  instance  'wait  before  recognis- 
ing President  Diaz  as  President  of  Mexico  until 
it  shall  be  assured  that  his  election  is  approved 
by  the  Mexican  people,  and  that  his  administra- 
tion is  possessed  of  stability  to  endure  and  of  dis- 
position to  comply  with  the  rules  of  international 
comity  and  the  obligations  of  treaties. '  The  Diaz 
Government  was  officially  recognised  by  Germany 
May  30, 1877,  by  Salvador  and  Guatemala  June  7, 
by  Spain  June  16  and  soon  afterwards  similar 
action  was  taken  by  Italy.  These  were  all  the 
powers  then  represented  in  Mexico,  except  the 
United  States.  In  his  annual  message  of  Decem- 
ber 3,  1877,  President  Hayes  stated  that  it  had 
been  'the  custom  of  the  United  States  when  such 
(revolutionary)  changes  of  government  have  here- 
tofore occurred  in  Mexico,  to  recognise  and  enter 
into  official  relations  with  the  de  facto  government 
as  soon  as  it  shall  appear  to  have  the  approval^of^ 
the  Mexican  people  and  should  manifest  a  disposi- 
tion to  adhere  to  the  obligations  of  treaties  and 
international  friendship,'  but  that  'in  the  present 
case  such  official  recognition  had  been  deferred 
by  the  occurrences  on  the  Bio  Grande  border.' 

"Official  recognition  was  given  in  May,  1878, 
when  a  formal  reception  was  tendered  to  a  new 
minister  from  Mexico  and  the  President  formally 


A  BIRD'S-EYE  VIEW  23 

replied  to  the  letter  of  General  Diaz  announcing 
the  recall  of  the  provisional  representative. " 

The  events  which  followed  the  recognition  of 
President  Diaz  are  familiar  enough.  The  story 
of  events  from  1910,  from  the  overthrow  of  Diaz 
to  the  recognition  of  the  de  facto  government  of 
President  Carranza,  has  been  told  in  many  ver- 
sions. The  past  I  shall  leave  to  the  reader's  judg- 
ment. My  concern  is  with  the  present. 


CHAPTER  H 

THE  MEXICAN  PUZZLE 

TROUBLE  and  revolutions  are  two  things 
which  can  be  started  without  money.  It 
doesn't  require  money  to  start  a  street 
fight  nor  does  it  require  gold  to  upset  a  nation. 

This  is  not  more  true  of  any  place  than  of  Mex- 
ico. The  seven  years  of  strife  which  the  people 
south  of  the  Rio  Grande  have  had  are  not  due  to 
a  fat  treasury.  But  Mexico  has  reached  the  place 
now  where  it  knows  that  money  is  necessary  to 
end  a,  revolution. 

More  than  a  century  ago  when  France  was  ex- 
periencing the  internal  disorders  which  infest 
Mexico  a  revolutionist  remarked  that  "Revolu- 
tions are  not  made  with  rosewater."  To-day  the 
Mexicans  will  tell  you  that  the  evils  of  a  revolu- 
tion are  not  washed  away  with  perfume,  either. 
This  requires  money. 

Early  in  the  summer  of  1917  the  Mexican  Gov- 
ernment invited  Mr.  Henry  Breure,  former  City 
Chamberlain  of  New  York,  and  two  expert  ac- 
countants, including  Mr.  Thomas  W.  Lill,  who 
spent  nine  years  helping  to  reorganise  the  Philip- 
pine Government,  to  establish  business  methods  in 

24 


THE  MEXICAN  PUZZLE  S5 

the  governmental  departments.  One  day  in  July 
the  American  commission  went  to  Guadalajara, 
the  centre  of  the  ranch  section,  with  an  official 
escort  of  Mexicans.  After  dinner  one  evening  an 
American  asked  a  representative  of  the  Carranza 
Government  what  the  revolution  had  accomplished 
for  the  Mexican  people.  The  officer  explained 
what  he  thought  the  results  of  the  revolution 
would  be,  but  the  American  pressed  him  for  an 
answer  to  his  original  question.  Eeluctantly  the 
officer  admitted  that,  so  far,  nothing  had  been 
accomplished. 

Mexico  has  reached  the  crossroad  in  the  path  of 
the  revolution.  Since  1910  she  has  had  nothing 
but  trouble  and  although  it  was  not  begun  with 
money  it  has  cost  the  government  and  the  people 
millions  of  dollars  in  gold  and  property,  thou- 
sands of  lives  and  the  loss  of  her  international 
prestige  which  cannot  be  measured  in  pesos.  To- 
day most  of  the  fighting  is  at  an  end.  There  are 
bandits  in  some  sections  of  the  Republic,  but  their 
raids  are  becoming  fewer  each  month.  Mexico 
City,  itself,  is  as  busy  and  active  as  New  York, 
but  there  is  a  financial  crisis,  which,  although  not 
evident  upon  the  surface  of  things,  is  destined  to 
mark  the  climax  of  the  revolution. 

I  arrived  in  Mexico  in  July  to  look  at  the  politi- 
cal, economic,  social  and  revolutionary  puzzle 
from  the  inside.  I  saw  many  phases  of  it  in 
Monterey,  San  Luis  Potosi  and  Mexico  City,  this 
puzzle  which  is  still  puzzling  Mexico.  I  have  been 


26  MEXICO'S  DILEMMA 

told  that  not  even  President  Carranza  knows  how 
it  will  be  solved,  although  at  least  two  solutions 
are  possible. 

When  I  crossed  the  international  bridge  at 
Laredo,  Texas,  and  sauntered  through  the  streets 
of  Nuevo  Laredo,  a  midget  donkey,  carrying  a 
long-legged  peon,  trekked  around  the  corner  of 
the  telegraph  office.  The  Mexican  had  to  hold  up 
his  feet  to  keep  from  dragging  them  in  the  dust. 
The  beast  was  so  small,  and  the  man  so  tall,  that 
head  down  it  might  have  walked  between  his  legs. 
Jostling  behind  the  pair  was  a  small  "  express " 
wagon  such  as  American  boys  play  with.  It  was 
loaded  with  grass,  sufficient  for  about  one  meal 
for  a  hungry  donkey.  A  string  which  the  peon 
held  was  tied  to  the  wagon  tongue.  And  the  beast 
was  thus,  presumably,  hauling  its  load  and  food 
to  the  hovel  which  was  their  home. 

I  described  this  incongruous  sight  to  an  Ameri- 
can who  was  en  route  to  Mexico  with  me,  where- 
upon he  remarked : 

"How  typical  of  Mexico  to-day — the  old  Bibli- 
cal ass,  the  American  toy  and  the  lazy  peon. 
Since  the  revolution  all  the  progress  Mexico  made 
under  Diaz  has  disappeared.  Mexico  to-day  is 
stagnant. " 

A  few  minutes  later,  however,  I  went  through 
the  Nuevo  Laredo  freight  depot  with  Mr.  Ean- 
dolph  Eobertson,  U.  S.  Vice  Consul  at  Monterey. 
Automobiles,  food,  machinery,  household  goods 
and  thousands  of  different  manufactured  articles 


THE  MEXICAN  PUZZLE  27 

from  the  United  States  were  packed  within  its 
four  walls  awaiting  transportation  to  various 
parts  of  Mexico.  More  than  two  hundred  Mexi- 
cans were  busy  loading  the  freight  cars  on  the 
siding.  In  Laredo,  Texas,  according  to  American 
officials,  there  are  250  freight  cars  loaded  with 
goods  for  Mexico  awaiting  shipping  facilities. 

In  Monterey  during  April,  May  and  June  the 
American  consulate  records  show  that  the  im- 
ports and  exports  of  that  district  were  greater 
than  at  any  time  in  the  history  of  Mexico. 

According  to  the  evidence  in  Nuevo  Laredo  and 
Monterey,  Mexico  is  not  only  not  standing  still 
but  is  making  vigorous  business  strides  forward. 

There  are  three  ways  of  looking  at  Mexico. 
One  is  to  view  the  past  with  all  its  rape,  murder, 
robbery  and  banditry ;  its  destruction  and  misery. 
The  second  way  is  to  observe  the  present  with  its 
grave  problems,  its  ignorance  and  hatred.  The 
third  way  is  to  peer  into  the  future  with  its  un- 
limited possibilities  for  ruin  or  success.  I  was 
not  in  Mexico  during  its  Eeign  of  Terror,  but  I 
saw  some  of  the  results — the  razed  cities,  the  de- 
stroyed railroads  and  foreign  property,  the  pov- 
erty and  evidences  of  atrocities.  I  went  to  Med- 
ico to  report  the  present  and  to  narrate  in  a  broad 
way  what  may  be  expected  in  the  future.  It  is  the 
to-day  of  Mexico  which  will  determine  the  to- 
morrow, and  it  is  the  to-morrow  of  Mexico  which 
will  decide  whether  Mexico  is  to  be  ruled  by  Mex- 
icans or  whether  the  United  States  must  intervene 


28  MEXICO'S  DILEMMA 

to  establish  order  and  protect  the  business  inter- 
ests of  her  citizens  and  those  of  her  Allies. 

I  went  to  Mexico  on  the  Honeymoon  Special 
which  took  Ambassador  Henry  Prather  Fletcher 
and  his  bride  to  the  ancient  capital  of  the  Aztecs. 
From  the  sandy  banks  of  the  muddy  Eio  Grande 
to  the  rainy  plateau  of  Central  Mexico  Mr. 
Fletcher  travelled  like  a  conquering  hero.  In  the 
receptions  which  were  accorded  him,  if  they  were 
not  as  resplendent  as  similar  functions  in  the 
United  States,  there  was  evident  a  good-will  and 
there  was  present  more  enthusiasm  than  had  been 
shown  any  Americans  since  the  days  of  Diaz.  Mr. 
Fletcher's  return  was  triumphant  despite  the  fact 
that  the  military  salutes  were  crude  and  the  music 
even  cruder.  When  the  Ambassador  crossed  the 
international  bridge  a  Mexican  cannon,  hidden  in 
the  bushes  of  Nuevo  Laredo,  saluted,  but  there 
was  a  long  time  between  shots.  As  the  official 
representative  of  the  United  States  he  should 
have  received  nineteen  salutations  instead  of  five, 
but  the  ambassador  was  so  busy  exchanging  greet- 
ings he  did  not  notice  this  until  I  asked  him 
whether  the  embargo  had  been  raised  on  ammuni- 
tion for  saluting  purposes.  It  seems  that  because 
of  the  famous  Tampico  incident  the  Mexicans  are 
not  permitted  to  have  fireworks. 

Although  the  first  band  which  greeted  the  envoy 
played  the  "Star-Spangled  Banner,'*  the  others 
confined  their  music  to  Mexican  pieces  until  the 
train  reached  Queretaro.  Then  during  an  effer- 


MEXICAN    VILLAGERS    WHO   TURNED  OUT  TO 
SEE    SENOR   FLETCHER 


AMBASSADOR   FLETCHER'S    MILITARY    ESCORT 


THE  MEXICAN  PUZZLE  29 

rescence  of  enthusiasm,  when  the  ambassador  was 
sing  hugged  by  an  unusually  large  number  of 
Mexican  officials,  the  band  played  the  Hesitation 
raltz. 

One  travels  through  Mexico  to-day  with  an 
'exploradoro."  Bandits  are  still  operating  along 
te  railroad  lines  and  it  is  not  safe  to  be  without 
" protection."  The  "exploradoro,"  which  pre- 
ceded the  Honeymoon  Special,  was  made  up  of 
two  armoured  cars  filled  with  soldiers.  In  two 
day  coaches  on  the  Special  itself  were  two  groups 
of  soldiers.  One  car  contained  the  soldiers  trav- 
elling with  their  families,  in  the  other  were  men 
in  uniform.  On  the  back  platform  of  the  private 
car,  which  President  Carranza  used  when  he  was 
First  Chief  of  the  Constitutionalists,  stood  three 
soldiers  armed  with  heavy  Mexican  rifles.  One 
day  when  the  train  was  nearing  Mexico  City  an 
American  asked  a  member  of  President  Car- 
ranza 's  staff  about  the  Mexican  rifles.  The  Cap- 
tain replied  they  were  "very  good"  except  that 
they  were  "easily  overheated."  Then,  adding 
that  each  gun  was  loaded  with  a  minimum  of  ten 
rounds,  he  lifted  one  of  the  weapons  to  exhibit 
the  ammunition.  The  rifle  was  empty !  He  exam- 
ined the  second.  It  was  just  as  harmless,  and 
when  the  third  was  opened  the  situation  became 
embarrassing.  The  guard  on  the  rear  platform 
was  without  ammunition.  The  guard  could  not 
be  condemned  because  the  Carranza  Government 
has  needed  the  sinews  of  war  and  Mr.  Fletcher 


30  MEXICO'S  DILEMMA 

was  just  returning  from  Washington  after  hav- 
ing persuaded  President  Wilson  that  the  embargo 
should  be  raised. 

The  bandits,  however,  which  the  ambassador 
saw  on  the  return  to  his  post,  were  perfectly  harm- 
less and  the  ' i  exploradoro  "  and  '  *  armed  "  soldiers 
were  not  needed.  At  various  points  along  the  line 
one  sees  bandits  hanging  from  telegraph  poles  and 
trees,  swaying  in  the  wind  like  pendulums.  The 
men  who  tied  these  fellows  up  did  a  good  job  of 
it.  They  will  not  drop  until  they  decay,  when  the 
wolves  will  take  charge. 

From  the  Texas  border  to  Monterey  one  sees 
nothing  but  sand,  cactus  plants  and  dust.  Along 
the  route  there  are  "  specks "  where  once  stood 
villages,  villages  which  passed  away  during  some 
stage  of  the  revolution.  The  depots  and  homes  are 
destroyed.  The  people,  who  remained,  are  like  ani- 
mals. They  live  in  the  ruins  or  under  the  blue 
sky,  day  and  night.  They  are  clothed  in  garments 
which  after  hard  wear  would  have  been  discarded 
five  years  ago  by  almost  any  one  else.  Many 
children  run  with  only  a  rag  round  their  waists. 
The  women  and  men  alike  are  barefooted,  or,  per- 
haps to  protect  tender  feet,  some  still  have  the 
sole  of  a  shoe  which  is  tied  to  each  foot  with 
strings.  Almost  all  live  by  selling  food  to  the 
travellers  who  must  go  this  way  to  Monterey  and 
Mexico  City.  Eggs,  cheese,  pancakes,  water,  milk, 
coffee,  beans — the  national  dish — and  whatnot, 
are  peddled  at  so  many  centavos  apiece.  Here  is 


THE  MEXICAN  PUZZLE  31 

poverty  without  misery.  These  people  are  happy 
and  contented.  They  have  never  seen  any  other 
living.  They  have  no  schools.  There  are  no 
churches.  Civilisation  to  them  is  a  railroad  train. 
Business  is  a  railroad  train.  Life  is  but  the  hours 
between  trains. 

As  I  stood  on  the  siding  at  Queretaro  one  day 
gazing  at  this  awful  aspect  of  life,  a  young  Mexi- 
can, who  had  been  educated  in  the  United  States, 
remarked  to  me : 

"You  know,  if  these  people  could  go  to  the 
states  for  a  few  years  they  would  come  back  dif- 
ferent people.  They  don't  know  any  better.  They 
have  had  no  opportunity. " 

While  the  engine  was  taking  water  at  Quere- 
taro and  I  sauntered  about  the  train  I  met  an  old 
American  railroader  who  had  been  working  on 
Mexican  railways  twenty  years.  Four  thousand 
dollars,  his  life  savings,  which  he  had  invested  in 
a  hotel  in  a  town  near  there,  disappeared  one 
night  in  a  fire  when  the  bandits  came  to  burn  and 
plunder. 

* '  These  bandits, ' '  said  he,  ' '  will  never  stop  until 
there  is  food  enough  for  all  the  people.  There 
would  be  no  bandits  if  there  was  work  for  the  men 
and  food  for  their  families.  You  know  what  the 
Mexicans  say  around  here.  Oh,  I  know  them  and 
they  don't  know  I'm  an  American  or  my  life 
would  not  be  worth  that" — and  he  snapped  his 
fingers.  "But  I  make  good  money  and  I  travel  up 
and  down  these  lines.  You  know  these  people  say 


32  MEXICO'S  DILEMMA 

that  all  the  food  in  Mexico  has  to  be  sent  to  the 
United  States  to  feed  the  soldiers  and  that  if  the 
United  States  had  not  gone  to  war  there  would  be 
plenty  of  food  in  Mexico. ' ' 

While  we  were  standing  in  the  sun's  rays,  an 
old  crippled  woman  with  her  blind  daughter  came 
up  begging  for  money. 

" Don't  give  that  old  hag  anything,'*  said  my 
companion.  "You  know,  she  gouged  the  eyes  out 
of  that  kid  so  she  could  get  more  money  begging. 
Yes,  sir.  That's  what  she  did.  Blinded  that  little 
girl  of  hers." 

Then  cursing  in  Spanish  he  kicked  the  sand  with 
his  foot  and  forced  her  to  wabble  away.  I  mar- 
velled at  the  flood  of  his  words.  It  must  require 
twenty  years'  residence  to  be  able  to  curse  in 
Spanish  and  do  it  properly.  I  had  had  a  book 
called  "Spanish  in  a  Week"  for  more  than  a 
month  and  about  all  I  could  do  was  to  buy  a  cigar 
and  order  eggs  and  bacon. 

After  fifty-six  hours  of  travel  and  delay,  the 
Honeymoon  Special  reached  Mexico  City. 

The  city  to-day  is  surprisingly  peaceful  and 
busy.  Hundreds  of  automobiles  and  carriages 
race  through  the  streets — there  appear  to  be  no 
speed  laws  in  force  and  Mexicans  drive  their  cars 
with  the  same  enthusiasm  that  a  child  plays  with  a 
new  toy.  The  avenues  Cinco  de  Mayo  (the  Fifth 
of  May),  Francisco  I.  Madero  and  Avenida 
Juarez  are  as  busy  as  Broadway  or  State  Street, 
though  the  people  look  more  like  those  along  the 


THE  MEXICAN  PUZZLE  S3 

Bowery  and  Halsted  Street.  Poor  and  peon,  mid- 
dle class  and  foreigner,  rub  elbows  on  the  side- 
walks as  newsboys  run  through  the  streets  with 
extras. 

But  what  incongruous  sights  one  sees !  I  rode 
out  the  Paseo  de  la  Keforma,  the  Eiverside  Drive 
of  Mexico  City,  to  see  the  palatial  homes  of  the 
Cientificos,  those  great  houses  where  the  old  fol- 
lowers of  Diaz  lived  like  monarchs.  In  the  park- 
ways along  the  sides  of  the  street  nurse  girls  were 
wheeling  the  babies  of  the  wealthy.  On  this  thor- 
oughfare there  were  no  signs  of  poverty,  although 
the  street  pavement  itself  was  a  motly  compound 
of  holes  and  pavement  and  the  carriage  bumped 
and  jostled  from  curb  to  curb.  A  little  later  I 
walked  up  Avenida  Juarez  where  beggars  seem  to 
crawl  out  of  every  doorway.  Not  far  from  the 
Spanish  Embassy,  a  big  palatial  structure,  I 
paused  at  the  barracks  of  the  second  infantry 
regiment  to  listen  to  the  band  and  to  watch  the 
soldiers  saunter  here  and  there  with  nothing  to 
do  but  "kill  time/'  smoke  cigarettes  and  talk  to 
their  wives  and  children  who  are  as  numerous  as 
the  soldiers  themselves.  On  the  curb,  in  front,  sat 
a  big,  fat  Mexican  woman  smoking  a  brown  cig- 
arette. A  baby,  just  able  to  walk,  stood  in  the 
street  before  her,  sucking  at  its  mother's  breast 
and  punching  it  with  its  bony  fists  in  an  effort  to 
extract  the  morning  breakfast.  A  soldier  handed 
the  woman  a  cake.  She  tied  this  in  a  soiled  hand- 
kerchief where  she  carried  her  money  and  other 


34  MEXICO'S  DILEMMA 

valuables  and  continued  to  puff  at  the  cigarette. 

In  front  of  the  National  Palace  two  companies 
of  soldiers  in  impossible  field  uniforms,  some  bare- 
footed, and  all  dirty,  paraded  behind  a  military 
band. 

People  crowd  into  the  shops.  There  is  so  much 
business  shop-keepers  are  as  independent  as  an 
American  firm  without  competition.  On  the  side 
streets  some  policemen  or  boy-scouts  are  drilling 
and  receiving  instructions  from  officers. 

Aside  from  the  newspapers  and  the  posters  in 
the  windows  one  would  not  suspect  that  there  is  a 
war  in  Europe. 

From  the  shop  windows  one  learns  that  there  is 
a  great  war  in  progress,  and  one  learns  it  from 
the  Germans.  In  many  windows  are  large  maps 
of  Europe  showing  Germany  and  the  Central 
Powers  in  red  and  the  Allies  in  black.  The  neu- 
trals are  "yellow."  The  map  is  labelled:  "The 
Defensive  War  of  the  Central  Powers."  It  is  a 
clever  bit  of  German  propaganda.  Although  only 
about  two  out  of  every  ten  Mexicans  can  read  and 
write,  all  can  understand  pictures.  This  map, 
even  without  a  heading,  tells  a  story  which  the 
Mexicans  can  comprehend. 

Another  cartoon  pictures  a  bull  fight.  All  bulls 
representing  the  Allies  are  defeated  and  the  Ger- 
man bull  defiantly  gazes  at  Uncle  Sam,  who  is 
standing  at  the  edge  of  the  ring.  A  man  repre- 
senting Mexico  is  standing  beside  Uncle  Sam  and 
urging  him  not  to  get  into  the  ring. 


THE  MEXICAN  PUZZLE  35 

In  several  jewelry  shops  I  saw  placards,  or 
what  were  supposed  to  be  photographs  of  "wild 
men  from  Australia,"  and  the  label  underneath 
said :  '  *  These  wild  men  of  Australia  are  fighting 
for  England  for  the  civilisation  of  Europe. " 

There  are  more  Japanese  shops  in  Mexico  City 
than  I  had  expected  to  find.  Although  there  are 
three  or  four  in  the  business  district,  the  big  ma- 
jority are  in  the  suburbs.  In  offices  throughout 
the  city  one  sees  hundreds  of  Japanese  posters, 
advertising  Nipponese  goods.  In  the  only  foun- 
dry in  Mexico  City  which  is  making  war  munitions 
is  a  big,  modern  Japanese  factory,  recently  im- 
ported from  Japan.  When  the  present  govern- 
ment found  it  impossible  to  obtain  war  supplies 
from  the  United  States,  a  Japanese  commission 
was  invited  to  Mexico  and  this  plant  was  erected 
by  the  Far  Easterners.  The  large  wireless  tower 
near  Chapultepec  Park  I  saw  being  repaired.  A 
Mexican  officer  told  me  when  it  was  finished  it 
would  be  powerful  enough  to  communicate  with 
Japan.  Although  American  observers  have  heard 
this,  they  consider  it  improbable. 

Six  months  before  I  arrived  in  Mexico  the  pres- 
ent government  was  exceedingly  suspicious  of 
Americans  and  especially  of  the  United  States 
Government.  When  an  American  during  my  stay 
there  called  upon  a  high  government  official  and 
discussed  the  question  of  a  loan  this  official  re- 
marked : 

"The  American  people  and  the  Mexican  peo- 


36  MEXICO'S  DILEMMA 

pie  are  all  right,  but  the  governments  are  all 
crooked." 

To  a  great  extent  Ambassador  Fletcher,  who 
speaks  Spanish  and  knows  the  characteristics  of 
Latin  peoples,  has  been  able  to  re-establish  confi- 
dence in  many  circles,  but  his  task  is  by  no  means 
completed.  There  is  a  strong  anti-American 
sentiment  in  Mexico  which  is  being  augmented  by 
the  pro-German  propaganda.  One  morning  I  was 
told  in  several  places  that  the  Allies  were  about 
to  be  defeated  and  that  Eussia  was  to  join  with 
Austria-Hungary  and  Japan  against  England, 
France  and  the  United  States.  Every  time  I 
passed  the  big  German  book  store  in  Mexico  City, 
where  German  photographs  and  maps  are  dis- 
played, the  sidewalks  were  crowded  with  people. 
In  one  window  hung  the  same  map  of  Europe 
which  one  sees  in  many  shop  windows  in  Berlin 
— a  gigantic  chart  showing  the  position  of  the 
armies  of  Germany  in  the  occupied  territories, 
a  "proof"  that  Germany  is  winning  the  war. 

The  lack  of  confidence  in  the  ability  of  the  Allies 
to  defeat  Germany  and  old  suspicion  of  the  United 
States  are  the  two  things  which  hamper  the  lead- 
ing Mexicans  who  are  working  for  a  closer  rela- 
tionship between  Mexico  and  the  Powers  fighting 
Central  Europe.  Most  intellectual  Mexicans,  as 
well  as  many  government  officials,  realise  that  the 
best  interests  of  Mexico  are  with  those  of  the 
United  States,  France  and  England,  but  the  preju- 
dice of  the  people  is  difficult  to  overcome. 


EOITQRES    MOlLERHNOS. 
Director:  Enrique  P<«z  Valencia 
LIBRBRIA    ALBMANA 

A3/M  *V*1M* 

Sspeeial 

Preclo  de  e*te  Numero 
CEJVT'A.VOW. 

(lexico,  IS  deagostode  1917 


COVER   FOR   THE  GERMAN    NEWSPAPER  OF   MEXICO 


THE  MEXICAN  PUZZLE  37 

The  question  of  what  attitude  Mexico  should 
ultimately  take  regarding  the  world  war  is  very 
closely  connected  with  the  Mexican  puzzle  to-day. 
This  problem  is : 

"How  can  Mexico  obtain  money?" 

The  first  conclusion  which  the  American  experts 
reached  after  two  months'  examination  of  the 
Mexican  records  was  that  the  nation  was  bank- 
rupt. One  of  the  officials  began  the  dictation  of  a 
report  beginning  with  a  statement  to  that  effect. 
Then  when  he  tried  to  establish  his  conclusion  by 
facts,  the  facts  failed  him.  So  he  finally  concluded 
that  if  the  government  is  reorganised  along  scien- 
tific business  lines  it  will  be  able  to  weather  the 
present  storm  without  financial  aid  from  a  for- 
eign country.  In  coming  to  this  conclusion,  how- 
ever, this  authority  was  compelled  to  disregard 
the  foreign  debt  and  foreign  obligations  of  the 
Mexican  Government. 

The  records  of  the  present  government  show 
that  President  Carranza  has  asked  Congress  to 
authorize  three  loans.  The  first,  amounting  to 
150,000,000  pesos,  is  to  be  used  to  pay  debts.  The 
second  loan  which  Mr.  Carranza  seeks  amounts  to 
50,000,000  pesos  to  be  used  to  rebuild  and  recon- 
struct the  railroads.  The  third  loan,  for  which 
the  authority  of  the  National  Congress  is  asked, 
is  for  100,000,000  pesos  to  establish  a  "bank  of 


issue." 


Something  of  the  financial  crisis  facing  Mexico 
may  be  gathered  from  these  brief  figures : 


38  MEXICO'S  DILEMMA 

In  May,  1916,  the  estimated  revenue  of  the  Con- 
stitutionalist Government  was  four  million  pesos, 
about  two  million  dollars  a  month.  Fourteen 
months  later  the  estimated  revenue  was  107,- 
000,000  pesos  annually,  but  the  budget  called  for 
an  expenditure  of  80,000,000  pesos  more  than  the 
income.  The  Carranza  Government  is  operating 
on  a  cash  basis  now  and  is  spending  more  than 
it  is  making,  although  government  officials  are 
being  paid  only  seventy-five  per  cent  of  their  sal- 
aries in  cash.  This  deficit  does  not  take  into  con- 
sideration any  of  the  foreign  obligations. 

It  is  the  contention  of  the  American  experts  and 
of  certain  government  officials  that  through  gov- 
ernmental economies  this  deficit  can  be  cut  down 
so  that  it  will  not  be  "dangerous"  and  new  bonds 
can  be  issued  to  replace  bonds  held  in  foreign 
countries. 

The  other  view  of  the  financial  situation,  which 
I  found  the  predominant  one,  is  that  the  present 
government  cannot  continue  without  the  aid  of 
foreign  capital.  This  would  seem  to  be  the  belief 
of  President  Carranza,  too,  inasmuch  as  he  asked 
the  federal  Congress  for  authority  to  raise  300,- 
000,000  pesos,  that  is,  $150,000,000. 

On  July  7th,  1917,  El  Universal  printed  the  fol- 
lowing message  which  President  Carranza  sent  to 
the  Chamber  of  Deputies : 

"To  the  Secretaries  of  the  Chamber  of  Depu- 
ties :  for  its  Constitutional  effect :  I  beg  to  send 


THE  MEXICAN  PUZZLE  39 

you  with  this  message  a  bill  authorising  the  Ex- 
ecutive to  procure  in  Mexico,  or  outside,  up  to 
100,000,000  pesos,  gold,  to  found  the  sole  bank  of 
issue  authorised  by  the  political  constitution  of 
the  Kepublic  promulgated  in  Queretaro  February 
5th,  1917. 

"Surely  the  Deputies  will  be  persuaded  that 
one  of  the  principal  causes  why  agricultural,  in- 
dustrial and  commercial  development  of  the  coun- 
try have  not  proceeded  with  the  quickness  with 
which  the  re-establishment  of  order  might  lead 
one  to  suppose,  is  the  almost  complete  disappear- 
ance of  credit,  and  the  insufficiency  of  circulat- 
ing medium  which  makes  difficult  the  reasonable 
operation  of  the  economic  activities  of  the  Na- 
tion. 

"It  is  for  this  reason  that  the  Executive  be- 
lieves it  of  imperious  necessity  to  proceed  imme- 
diately to  organise  the  sole  bank  of  issue  provided 
in  the  political  constitution  of  the  Eepublic. 

"THE  BANKING  SYSTEM 

"The  banking  systems  established  by  govern- 
ments in  the  past,  although  in  a  way,  long  ago, 
they  fulfilled  the  necessities  of  the  moment,  were 
established  on  a  basis  of  absolute  privilege  in  fa- 
vour of  capitalists  without  compensation  for  na- 
tional interests  and  without  foresight.  The  issues 
of  the  banks  never  had  reasonable  and  adequate 
guarantees;  some  of  them  enjoyed  express  privi- 


40  MEXICO'S  DILEMMA 

leges  in  regard  to  the  amount  of  their  issue;  all 
enjoyed  the  unjust  privilege  of  exemption  from 
taxes  and  the  odious  power  to  apply  special  primi- 
tive laws  for  their  own  benefit.  The  concessions 
for  the  establishment  of  banks  of  issue  were 
granted  without  providing  a  logical  and  proper 
co-operation  between  them,  but  giving  rise  to  an 
unreasonable  competition  ruinous  for  themselves 
and  for  the  Eepublic.  The  intervention  which  the 
Government  used  to  express  in  institutions  of 
credit  never  was  more  than  merely  nominal,  and 
among  many  other  cases  can  be  cited  this:  The 
banks  of  issue  figured  their  own  shares  of  stock 
among  the  securities  that  could  be  realised  upon. 
As  a  consequence  of  their  unreasonable  manage- 
ment and  of  their  bad  organisation,  the  complete 
failure  of  the  old  system  of  institutions  of  credit 
could  be  foreseen  when  the  international  crisis 
began  in  1913.  In  effect  the  first  manifestations 
of  revolution  actually  were  enough  to  cause  the 
banks  to  ask  the  government  of  the  usurper  for 
the  privilege  to  suspend  payments  which  was  con- 
ceded to  them,  in  exchange  for  the  privilege  the 
banks  of  issue  made  a  large  loan  to  the  usurper. 

"THE  ECONOMIC  SITUATION  OF  THE  COUNTKY 

"When  the  economic  situation  of  the  country 
became  grave  and  before  the  Constitutionalist 
Government  made  any  decrees  at  all  on  institu- 
tions of  credit,  the  situation  was  getting  more 


THE  MEXICAN  PUZZLE  41 

difficult  every  day  until  these  institutions  ceased 
to  properly  operate  and  soon  became  merely  spec- 
ulators in  the  paper  money  issued  by  the  Revolu- 
tionary  Government.  At  the  time  the  bills  had 
already  suffered  considerable  depreciation  which 
fluctuated  between  60  and  90  per  cent  of  discount 
on  nominal  value. 

"When  the  duties  of  the  campaign  permitted 
the  Government  of  the  Revolution  to  fix  its  at- 
tention on  the  financial  organisation  of  the  Repub- 
lic a  preliminary  decree  was  issued  fixing  a  period 
within  which  the  banks  of  issue  must  regulate 
their  fiduciary  circulation  in  accordance  with  the 
general  principles  of  the  law  of  institutions  of 
credit.  As  this  decree  was  issued  in  Vera  Cruz, 
where  the  necessary  estimates  for  knowing  the 
economic  situation  of  each  one  of  the  banks  in 
detail  was  lacking,  it  was  believed  at  the  begin- 
ning that  many  of  them  would  be  in  condition  to 
continue  their  operations  on  complying  with  the 
general  banking  law. 

"When  the  Department  of  Finance  came  into 
possession  of  the  balance  sheets  of  the  majority 
of  the  banks  of  issue  it  was  seen  that  although 
their  reserves  were  in  conformity  with  laws  in 
question  in  relation  to  their  fiduciary  circulation, 
the  banks  were  not  in  condition  to  continue  opera- 
tion because  a  great  part  of  their  assets  which 
went  into  large  nominal  figures  in  fact  represented 
an  insignificant  real  value. 

"As,  on  the  other  hand,  the  majority  of  the 


42  MEXICO'S  DILEMMA 

banks  of  issue  had  assumed  an  attitude  of  open 
hostility  against  the  Government  of  the  Revolu- 
tion contributing  to  the  depreciation  of  the  gov- 
ernment paper  money  and  were  conducting  them- 
selves in  a  manner  against  public  interests 
through  speculations  outside  of  their  sphere  of 
action,  the  First  Chief  believed  proper  to  make 
more  radical  decrees  to  put  an  end  at  once  to  the 
defective  banking  systems  then  expiring  and  to 
leave  the  field  open  to  a  better  organisation. 

' l  Therefore  on  the  15th  of  September  last  year 
a  decree  was  issued  repealing  all  laws  in  force 
until  that  date  on  institutions  of  credit  and  put- 
ting the  banks  of  issue  under  the  direction  of 
Boards  of  Eeceivers  which  have  been  operating 
them  up  to  date. 

"THE  SOLE  BANK  OF  ISSUE 

"The  Constituent  Congress  which  met  in  Quere- 
taro  was  perfectly  aware  of  the  need  of  substitut- 
ing the  defective  banking  system  by  another  more 
reasonable  and  in  consonance  with  the  economic 
needs  of  the  nation ;  with  the  result  that  the  new 
Magna  Charta  provided  for  the  establishment  of 
a  sole  bank  of  issue. 

"The  Department  of  Finance  has  been  studying 
since  then  the  bill  which  in  due  time  the  Execu- 
tive will  submit  to  Congress  on  the  organisation 
of  the  sole  bank  of  issue ;  but  as  arrangements  to 
obtain  new  capital  must  consume  much  time,  the 


THE  MEXICAN  PUZZLE  43 

Executive  believes  it  proper  to  use  the  time  to 
delay  as  little  as  may  be  the  organisation  of  the 
new  institution  of  credit. 


"PERFECTLY  DEFINITE  BASES 

"Elemental  prudence  dictates  that  the  new  bank 
of  issue  should  begin  its  operation  on  perfectly 
safe  bases  because  it  is  the  only  manner  in  which 
confidence  and  credit  may  return  in  healthy  and 
vigorous  form  to  renew  the  economic  life  of  the 
Eepublic. 

"If  the  Executive  under  my  charge  does  not 
immediately  send  to  Congress  concrete  bases  to 
obtain  the  initial  capital  of  the  new  bank,  but  asks 
authorisation  to  negotiate  with  capitalists,  it  is 
due  to  the  fact  that  in  the  present  financial  con- 
dition throughout  the  world,  it  is  not  easy  to  fore- 
see the  difficulties  the  Government  may  encounter 
to  induce  capitalists  to  make  an  investment  which, 
although  safe,  will  probably  meet  with  a  barrier 
of  prejudice  and  lack  of  confidence. 


"DEFINITE  PLAN  OF  ORGANISATION 

"It  is  therefore  necessary  for  the  Executive  to 
determine  in  advance  the  possibility  of  obtaining 
necessary  funds  for  its  establishment  before  sub- 
mitting to  the  Congress  a  definite  plan  for  the 
organisation  of  the  new  bank.  To  carry  the  tem- 
porary arrangements  through  the  Executive  needs 


44  MEXICO'S  DILEMMA 

complete  liberty  of  action,  for  even  the  determina- 
tion of  the  opinion  of  capitalists  and  preliminary 
arrangements  may  cause  the  early  organising  of 
the  new  institution  of  credit  to  be  changed.  In 
any  case,  the  Executive  will  have  the  honour  to 
submit  to  the  consideration  of  Congress  before 
carrying  into  effect  the  arrangements  made  with 
capitalists  together  with  the  general  law  which 
fixes  the  bases  for  the  bank  of  issue.  Mexico, 
July  6th,  1917." 

Commenting  upon  this  message  El  Universal 
said,  editorially: 

'  *  This  was  the  only  newspaper  which  upheld  the 
urgent  propriety  of  creating  a  large  stock  of  cir- 
culating money  for  business  and  the  commercial 
and  agricultural  development  of  the  country. 
The  foregoing  message  confirms  the  labour  of  El 
Universal,  in  all  its  parts.  Furthermore,  and 
this  is  the  opportune  time  to  say  so,  the  sum  asked 
for  by  the  government  appears  small  to  us,  for 
we  believe  it  very  difficult  to  obtain  any  money 
from  foreign  countries  without  the  previous  pay- 
ment of  the  coupons  of  our  debt,  and  if  this  were 
necessary,  the  amount  destined  for  the  sole  bank 
of  issue  would  come  out  much  less,  and  we  believe 
that  if  any  foreign  loan  must  be  agreed  upon,  we 
should  strive  resolutely  to  procure  up  to  the  sum 
necessary  to  improve  our  credit  in  foreign  coun- 
tries and  to  solve  economic  difficulties  in  the  in- 
terior. " 


THE  MEXICAN  PUZZLE  45 

In  case  the  Mexican  Congress  authorises  Mr. 
Carranza  to  raise  this  amount  there  are  but  two 
sources  from  which  it  might  come.  Either  Ameri- 
can hankers  will  take  the  bonds  and  sell  them  or 
the  United  States  Government  will  loan  money  to 
the  southern  neighbour. 

New  York  bankers  will  not  loan  money  to  Mex- 
ico as  long  as  conditions  are  unsettled  and  as  long 
as  there  is  danger  to  American  property  and 
American  citizens  in  Mexico.  These  bankers  will 
not  subscribe  to  a  loan  as  long  as  they  hold  old 
Mexican  bonds  which  have  had  no  interest  paid 
on  them  in  six  years  and  which  are  selling  for 
fifteen  dollars  each  in  the  United  States  to-day. 
This  has  been  candidly  explained  to  the  Mexican 
authorities. 

On  the  other  hand,  the  United  States  Govern- 
ment cannot  loan  money  to  Mexico  because  this  is 
forbidden  by  the  constitution  unless  Congress 
passes  a  special  act,  and  it  is  certain  that  neither 
the  administration  will  recommend  such  a  loan, 
nor  that  Congress  would  pass  such  an  act.  By 
the  terms  of  the  act  which  enables  the  United 
States  to  loan  money  to  foreign  governments  dur- 
ing the  war  it  is  particularly  stipulated  that  funds 
can  be  loaned  only  to  Allies.  This,  too,  has  been 
explained  to  the  Mexican  Government. 

The  easiest  way  and  perhaps  the  most  success- 
ful way  out  of  the  present  financial  difficulties  in 
Mexico  would  be  for  that  country  to  break  off 
diplomatic  relations  with  Germany  and  join  the 


46  MEXICO'S  DILEMMA 

international  league  of  nations,  which  will  follow 
this  war,  to  establish  the  peace  of  the  world. 

Should  the  Carranza  Government  fall  there  are 
on  the  horizon  to-day  no  leaders,  nor  is  there  a 
group  of  men,  who  could  take  hold  and  do  as  well 
as  the  Carranza  Government  is  doing.  There  are 
rebel  leaders  in  various  parts  of  the  country  from 
Villa  in  the  north  to  Zapata  in  the  mountains  near 
Mexico  City  and  General  Pelaez  in  the  oilfields 
outside  of  Tampico.  Once  this  government  falls, 
terror  will  reign  again  in  all  parts  of  the  country, 
and  as  the  United  States  and  the  Allies  are  almost 
wholly  dependent  upon  Mexico  for  oil  and  various 
minerals,  a  state  of  anarchy  in  Mexico  which 
would  interfere  with  the  Allies'  supply  of  these 
valuable  war  necessities  could  not  be  permitted. 
If  the  revolution  should  break  out  again  the  only 
solution  would  be  American  intervention,  which 
would  be  not  only  costly  to  us  but  would  divert  to 
a  certain  degree  the  energy  of  the  United  States 
which  it  is  so  necessary  to  concentrate  upon  the 
war  in  Europe. 

No  one  knows  this  better  than  the  Germans  in 
Mexico,  and  although  they  are  "playing"  the 
present  government  they  are  also  preparing  for 
the  time  when  there  may  be  trouble  in  Mexico 
injurious  to  the  United  States.  At  present  they 
want  to  keep  Mexico  neutral. 

The  Carranza  Government  has  been  told  offi- 
cially that  so  far  as  the  United  States  Government 
is  concerned  it  is  not  in  America's  interest  for 


THE  MEXICAN  PUZZLE  47 

Mexico  to  declare  herself  an  Ally,  but  entirely  in 
the  interests  of  Mexico.  Whether  President  Car- 
ranza  and  his  government  will  realise  this,  and 
whether,  even  if  they  do,  they  will  be  able  to  carry 
through  a  break  with  Berlin,  are  unanswerable 
questions.  One  must  await  developments. 

"  Will  Mexico  be  a  friend  or  a  foe  of  the  United 
States!"    That  is  to-day  an  insoluble  puzzle. 

NOTE:  In  Appendix  A  will  be  found  the  bills  presented  to  the 
Chamber  of  Deputies  regarding  the  remedies  for  the  financial 
crisis  as  they  were  printed  in  El  Universal. 


CHAPTER  in 

REBELS  AND   REVOLUTIONS 

NEEDLE  your  way  through  the  crowded 
streets  of  Mexico  City  or  motor  to  the  sub- 
urbs and  you  will  rub  sleeves,  exchange 
glances  with,  or  pass  along  the  road,  rebels,  ex- 
rebels  and  honest  soldiers.  Saunter  or  drive 
about  the  capital  and  you  will  see,  face  to  face, 
the  individuals  who  present  the  biggest  problem 
of  reconstruction  in  Mexico.  You  will  encounter 
a  sufficient  number  of  the  army  of  114,000  to  con- 
vince you  that  even  if  the  payrolls  are  padded 
there  are  large  groups  of  men  actually  drawing 
salaries. 

In  mid-August,  1917,  a  cousin  of  General  Za- 
pata,  the  bandit  chief  of  the  state  of  Morelos 
where  the  sugar  plantations  are,  surrendered  with 
"two  thousand  men"  to  the  national  government. 
Those  who  wished  to  join  the  army  of  the  Re- 
public were  permitted  to  do  so.  The  week  before 
these  men  were  bandits.  Within  seven  days  they 
became  soldiers. 

Not  all  of  the  peons  who  join  the  national  army 
are  patriotic,  a  fact  which  causes  considerable 
trouble  in  the  country  districts.  Sometimes,  after 

48 


REBELS  AND  REVOLUTIONS  49 

the  ex-rebels  have  been  with  the  government 
forces  long  enough  to  get  new  rifles  and  several 
rounds  of  ammunition,  they  trek  to  the  mountains 
to  be  welcomed  by  their  old  chief  with  a  hand- 
shake and  an  enthusiastic  hug,  the  customary  cor- 
dial greeting  between  Mexican  friends. 

One  day  while  I  was  in  Mexico  City  several 
officials  of  the  British  Embassy  were  motoring 
through  one  of  the  suburbs.  Approaching  a  gar- 
rison they  saw  a  soldier,  sitting  on  the  curb,  smok- 
ing a  cigarette.  As  they  passed  he  shouted: 
"Stop,"  and  other  words  which  were  so  mumbled 
they  could  not  be  understood. 

The  automobile,  which  had  passed  the  man, 
backed  to  within  a  few  feet  of  him  and  the  chauf- 
feur asked  what  was  wanted.  Instead  of  answer- 
ing, the  soldier,  who  was  evidently  intoxicated, 
continued  to  puff,  and  gazed  at  the  foreigners. 
After  waiting  several  minutes  and  receiving  no 
explanation  the  automobile  advanced.  Immedi- 
ately the  soldier  jumped  up,  recovered  his  bal- 
ance, and  started  towards  the  barracks  for  his 
rifle.  The  Englishmen  huddled  into  their  seats, 
the  chauffeur  added  gasoline,  and  before  the  rebel 
could  fire  the  party  was  several  hundred  yards 
away. 

There  being  no  other  route  to  the  city  the  for- 
eigners had  to  return  the  same  way  three  hours 
later.  Beaching  the  garrison  they  saw  both  sides 
of  the  highway  lined  by  a  company  of  soldiers. 
A  captain,  standing  in  the  middle  of  the  road,  held 


50  MEXICO'S  DILEMMA 

up  his  hand.  The  car  stopped  and  the  soldiers 
stood  at  attention. 

"Is  this  the  automobile  which  was  ordered  to 
stop  a  few  hours  ago  while  passing  here?"  the 
officer  asked. 

The  British  officials  expected  a  summary  ex- 
ecution, but,  having  experienced  excitement  be- 
fore, decided  to  preserve  their  calm. 

"Yes,  Senor  Captain,"  replied  an  Englishman, 
"we  were  ordered  to  stop  and  we  did.  .  .  ." 

His  explanation  was  interrupted. 

"All  right,  Senor,"  politely  answered  the  offi- 
cer. "I  wish  to  inform  you  that  discipline  has 
been  maintained.  You  may  go,  gentlemen." 

Soldiers  still  at  attention,  the  automobile  de- 
parted, but  the  foreigners  could  not  understand 
whether  they  or  the  soldier  had  been  disciplined. 
Inquiries  the  next  day  disclosed  that  the  soldier 
had  been  shot  for  giving  an  order  without  orders 
from  an  officer.  Discipline  was  maintained  by 
execution. 

It  is  not  always  the  soldiers,  however,  who  are 
.to  be  blamed.  I  met  the  manager  of  a  large  Amer- 
ican corporation  who,  for  two  years,  had  been 
paying  tribute  to  six  generals.  Their  price  for 
"protecting"  his  property  had  been  between  three 
thousand  and  seven  thousand  pesos,  at  intervals 
determined  by  officers.  Automobiles  were  then 
being  shipped  into  Mexico  City  by  the  dozens  and 
the  generals  asked  this  manager  for  six  autos. 
This  manager  telegraphed  to  Detroit  for  the  cars 


REBELS  AND  REVOLUTIONS  51 

and  expected  to  be  able  to  pay  the  graft  within  a 
very  short  time.  A  new  use,  indeed,  for  motor- 
cars, but  the  manager  and  the  company  were  satis- 
fied because  the  cars  cost,  delivered  in  Mexico 
City,  about  one-fourth  of  the  amount  of  the 
"protection"  formerly  rendered. 

Friends  of  President  Carranza  will  candidly 
admit  that  the  First  Chief,  when  he  was  fighting 
for  recognition  and  authority,  had  to  accept  the 
services  of  many  undesirable  men,  both  officers 
and  soldiers.  Mr.  Carranza  and  his  intimate  ad- 
visors know  that  there  are  rebels  and  grafters  in 
office  to-day.  They  realise  that  these  men  cannot 
be  ousted  immediately  and  without  cause.  If  the 
present  government  were  to  expell  from  the  army, 
or  imprison  every  officer  and  soldier  who  to-day 
is  not  following  orders,  the  government  would  be 
overthrown  even  if  the  penitentiaries  could  hold 
all  the  guilty.  For  this  reason  Mr.  Carranza  is 
working  slowly  and  quietly  to  eliminate  these  men 
from  his  councils  and  from  responsible  positions. 
Whether  he  will  succeed  is  a  puzzle  the  key  to 
which  has  not  been  found.  There  are  Mexicans 
and  foreigners  who  will  tell  you  that  the  Carranza 
Government  is  as  certain  to  fall  as  the  buildings  in 
Mexico  City  are  certain  to  sink;  and  this  latter 
fact  no  one  doubts,  as  even  the  National  Theatre, 
the  so-called  "White  Elephant "  because  its  mar- 
ble walls  are  uncompleted,  is  gradually  sinking  in 
the  mire  upon  which  the  capital  is  built.  Others 
will  inform  you  that  this  government  is  gaining 


52  MEXICO'S  DILEMMA 

strength  every  day  and  that  if  it  receives  financial 
assistance  nothing  will  be  able  to  wreck  it.  But 
all,  pessimists  and  optimists  alike,  agree  that  the 
greatest  problems  facing  the  government  to-day, 
excepting  the  financial,  are  the  problem  of  re- 
construction and  the  existence  of  the  rebels. 

Finance  is,  of  course,  the  greatest  problem,  and 
it  is  the  more  puzzling  because  the  problems  of 
financing  a  nation  like  Mexico  are  not  similar  to 
the  problems  of  financing  more  civilised  and  en- 
lightened countries.  Selfishness  and  ignorance 
play  an  even  greater  role  in  Mexico  than  pork- 
barrel  politics  play  in  Washington! 

One  day  I  recall  when  the  Chamber  of  Deputies 
was  in  session  a  member  called  the  attention  of 
the  presiding  officer  to  the  lack  of  a  quorum. 
Those  who  have  seen  how  well  the  U.  S.  House  of 
Representatives  is  attended  during  most  of  the 
debates  will  understand  such  a  situation. 

The  President  of  the  Deputies  summoned  the 
Sergeant-at-Arms  and  ordered  him  to  send  the 
members  to  their  seats.  Meanwhile  the  proceed- 
ings waited  the  arrival  of  the  deputies.  After  a 
long  interval  the  Sergeant  returned,  reporting 
that  he  was  unable  to  procure  a  quorum. 

1 1  Where  are  the  members  1 ' '  inquired  the  Presi- 
dent. 

1 1 They  are  at  the  Cashier's  window  awaiting 
their  pay,"  answered  the  officer. 

"Summon  the  cashier,"  ordered  the  President, 
and  when  the  latter  reached  the  rostrum  he  was 


THIS   WAS   AT  ONE  TIME  A  BEAUTIFUL  RESIDENCE. 
THIS    IS   THE  REVOLUTIONARY   REMAINS 


THE  FAMOUS  "SADDLE   MOUNTAIN"  OF   MONTEREY 


REBELS  AND  REVOLUTIONS  53 

told  to  close  the  pay  window  and  not  to  open  it 
again  during  sessions  of  the  Deputies. 

And  a  quorum  was  soon  present. 

That  incident  illustrates  one  aspect  of  the 
money  problem  in  Mexico.  An  incident  illustrat- 
ing another  aspect  came  to  my  attention  during  a 
conference  with  a  Canadian  electrical  engineer. 
The  company  he  represented  desired  to  erect  poles 
to  carry  their  feed  wires  from  a  plant  near  the 
capital  to  another  city.  The  line,  as  mapped,  was 
to  cross  a  large  plantation  owned  by  Indians. 
The  concession  was  worth  between  five  thousand 
and  eight  thousand  pesos  to  the  company.  The 
engineer  went  to  see  the  Indian.  He  offered  him 
four  thousand  pesos. 

"No,  no,  Senor,"  protested  the  Indian. 

1  '  Why  not  1 ' '  asked  the  foreigner. 

"No.  No  four  thousand,  Seiior,"  said  the 
owner. 

"Well,  how  much  then?  What  do  you  want?" 
questioned  the  Canadian. 

"If  Senor  will  fill  my  sombrero  and  my  son's 
sombrero  with  pesos,  silver  pesos,  I  will  give  you 
the  concession. 

"But,"  protested  the  engineer,  "four  thousand 
pesos  are  much  more  than  two  hats  will  hold." 

"No,  no,  Senor,  no.  You  must  fill  my  som- 
brero and  my  son's  sombrero  with  pesos." 

And  the  foreigner  returned  the  next  day  with 
enough  pesos  to  fill  the  two  hats  so  that  the  coins 
rolled  over  the  sides.  The  Indian  was  delighted. 


54  MEXICO'S  DILEMMA 

Two  sombreros  filled  with  pesos  meant  something 
to  him.  Four  thousand  pesos,  that  sum  was  a 
myth. 

It  is  not  the  ignorance  of  the  peons  or  the  In- 
dians, however,  which  makes  the  financial  situa- 
tion in  Mexico  difficult  to  solve.  It  is  the  igno- 
rance of  many  officials  and  leaders  regarding  in- 
ternational finance.  So  many  Mexicans  cannot 
understand  the  relationship  which  should  exist 
between  nations,  although  they  have  a  clear  idea 
of  money  matters  between  individuals. 

Discussing  the  problems  of  finance  and  recon- 
struction with  Mexican  officials  one  is  impressed 
by  the  fact  that  so  few  of  these  can  see  the  view- 
point of  the  outside  business  man,  the  foreign 
capitalist.  Most  Mexicans  will  say  that  because 
of  the  rich  natural  resources  of  the  country  any 
foreigner  ought  to  be  willing  to  loan  money  to 
the  government.  The  resources  are  here,  many  of 
them  still  untouched,  they  will  declare,  and  if  for- 
eign capital  invests  in  Mexico,  it  should  be  pre- 
pared to  share  prosperity  or  revolution  with 
Mexico. 

The  pacification  of  Mexico  to-day  presents  in 
many  respects  the  same  problem  with  which  the 
United  States  Government  had  to  deal  after  the 
Civil  War.  The  Mexican  bandits  are,  so  to 
say,  the  Ku-Klux  Klan  of  this  country.  Generals 
Villa  and  Zapata  may  be  likened  to  the  James 
brothers.  The  difference  is  that  in  the  United 
States  the  bandits  attacked  American  or  national 


REBELS  AND  REVOLUTIONS  55 

property.  In  Mexico  bandits  destroy  foreign 
property.  The  most  popular  cry  of  the  revolu- 
tionists has  been  "Down  with  the  foreigners  who 
exploited  us."  Thus  our  neighbour  south  of  the 
Eio  Grande  faces  some  of  our  problems  of  the 
late  Sixties  with  the  added  difficulty  that  when- 
ever the  highwaymen  operate  there  it  causes  an 
international  as  well  as  an  internal  crisis. 

The  operations  of  Villa,  in  the  North  have  agi- 
tated not  only  foreign  business  interests,  but  the 
American  people.  What  Zapata  has  done  dis- 
turbs the  Mexicans  the  most,  although  he,  too,  is 
opposed  to  foreigners. 

The  Carranza  Government  has  sent  several 
military  expeditions  into  Morelos  in  an  attempt 
to  crush  Zapata,  As  the  soldiers  marched  through 
the  state  in  search  of  Zapata 's  army  they  met 
only  the  most  peaceful  citizens.  No  one  knew 
where  Zapata  was!  No  one  had  seen  his  army! 
Zapata  was  clever  enough  not  to  fight.  He  or- 
dered all  his  soldiers  to  bury  their  arms  and 
plough  their  fields.  When  the  Carranza  forces 
left,  the  army  appeared,  and  it  was,  and  still  is, 
unsafe  for  any  one  to  go  through  the  state.  The 
government  has  attempted  to  stop  shipments  of 
ammunition  to  Zapata,  but  this  has  not  been  suc- 
cessful, as  officers  and  soldiers  in  the  govern- 
ment 's  army  have  sold  munitions  to  Zapata.  Now 
the  government,  suspicious  of  certain  officers  and 
men,  is  laying  a  trap  for  them,  and  if  they  are 
caught  they,  too,  will  be  "  disciplined. " 


56  MEXICO'S  DILEMMA 

Another  demand  of  the  revolutionists  has  been 
for  "land."  Even  the  present  government  sym- 
pathises with  this  demand,  and  the  first  endeav- 
ours of  President  Carranza  to  fulfil  promises 
made  during  his  campaign  are  being  made  in  the 
little  belligerent  state  of  Morelos.  It  is,  in  point 
of  size,  the  smallest  state  in  the  Union.  When 
the  Spaniards  settled  in  this  country  they  gave 
to  each  town  and  city  what  was  called  the 
"ejidos."  This  was  the  granting  of  one  league  of 
land  around  the  original  town  or  city  limits  to 
the  inhabitants  to  be  worked  by  the  community. 
During  the  development  of  Mexico  this  league  of 
land  has  been  given  to  outsiders  or  to  farmers 
having  property  nearby.  Many  towns  have  lost 
their  ' '  ejidos. ' '  This  is  particularly  true  in  More- 
los, and  the  "good"  citizens  of  this  fighting  state 
want  back  this  land.  So  the  present  government 
is  attempting  a  new  means  of  pacification.  It  is 
returning  this  property  to  the  community.  Simul- 
taneously the  government  is  announcing  that  all 
political  rivals,  who  swear  allegiance  to  the  gov- 
ernment, will  be  pardoned.  While  this  movement 
is  having  all  the  success  the  government  antici- 
pated, its  progress  can  only  be  very  gradual  be- 
cause Zapata,  like  the  Germans,  is  a  propagan- 
dist. He  is  telling  his  followers  that  if  they  sur- 
render to  Carranza  they  will  be  executed.  He  is 
warning  the  farmers  that  if  they  desert  him  they 
will  be  downtrodden  by  the  Americans.  And  the 
people  of  Morelos  are  suspicious  of  "outsiders." 


REBELS  AND  REVOLUTIONS  57 

This  anti- American  part  of  the  propaganda  is 
very  popular.  Even  the  present  government,  ac- 
cording to  many  Mexicans,  is  too  friendly  to  the 
United  States.  Most  of  the  newspapers  of  Mex- 
ico City,  even  those  that  are  pro- Ally  in  their  war 
sympathies,  have  a  grudge  against  the  United 
States.  El  Democrata,  the  chief  organ  of  the 
Germans,  prints  more  articles  of  hate  about  the 
United  States  than  any  other  newspaper.  Some 
American  journals  are  most  effectively  aiding  the 
Germans  in  Mexico  by  demanding  armed  inter- 
vention. 

Redencion,  another  daily,  seizes  every  oppor- 
tunity to  stir  the  slumbering  Mexican  against  the 
"  Yankees. "  On  August  9th,  1917,  it  printed  on 
the  first  page  a  three  column  cartoon  picturing  a 
nude  woman,  tied  to  a  stake,  representing  the 
revolution.  The  fire,  kindled  at  her  feet,  repre- 
sented the  " enemy"  of  the  revolution,  and  the 
fresh  logs  which  had  been  placed  on  the  flames 
were  labelled:  " Yankees, "  "United  States," 
"Friends  of  the  Yankees, "  etc.  Government  offi- 
cials who  are  friendly  to  the  United  States,  such 
as  Senor  Don  Luis  Cabrera,  unofficially  the  Act- 
ing Secretary  of  the  Treasury,  and  Seiior  Don 
Manuel  Amaya,  official  introductor  of  Ambassa- 
dors, are  also  "enemies." 

El  Democrata  is  one  of  the  morning  newspapers 
which  does  not  receive  the  Associated  Press  des- 
patches. Its  news,  telegrams  from  the  United 
States  and  Europe,  are  sent  to  Mexico  City  from 


58  MEXICO'S  DILEMMA 

Xew  York  by  the  '  *  Spanish- American  News  Agen- 
cy." These  telegrams,  which  the  United  States 
censor  was  permitting  to  pass  while  I  was  in 
Mexico,  were  not  only  intensely  pro-German,  bnt 
exceedingly  anti-American. 

Before  the  United  States  declared  war  the  Ger- 
man Embassy  in  Washington  sent  a  daily  telegram 
to  the  German  Minister  in  Mexico  City,  Herr  von 
Eckhart.  This  despatch  contained  the  wire. 
news  circulated  by  the  German  Admiralty  and 
Foreign  Office.  When  the  United  States  declared 
war  the  service  ceased,  and  an  organisation  known 
as  the  * * Spanish- American  News  Agency,"  with 
headquarters  in  Xew  York,  began  to  serve  El  Dem- 
ocrata  and  several  newspapers  in  South  America. 

Judging  from  the  despatches  I  saw  printed, 
this  concern  succeeded  the  news  service  of  the 
German  government,  operating  as  a  Mexican  com- 
pany. The  " Spanish- American  News  Agency" 
was,  and  doubtless  still  is.  doing  more  to  cause 
trouble  between  the  United  States  and  Mexico 
than  any  other  public  agency  in  the  Mexican  Re- 
public, 

Another  publicity  prostitute  is  La  Defensa,  an 
afternoon  newspaper  also  controlled  by  German 
interests.  It  announces  daily  some  great  catas- 
trophe to  the  United  States  or  the  Allies.  While 
I  was  in  the  capital  it  proclaimed  an  American 
revolution.  It  announced  the  sinking  of  several 
American  battleships  and  transports.  It  fore- 
casted American  intervention  and  printed  the 


REBELS  AND  REVOLUTIONS  59 

most  astounding  "news"  about  events  in  Wash- 
ington. Some  of  this  news  had  a  basis  in  fact; 
some  had  none  at  all.  La  Defensa  receives  most 
of  its  telegrams  from  Nuevo  Laredo,  Mexico.  A 
Mexican  who  lives  in  Laredo,  Texas,  crosses  the 
international  bridge  with  copies  of  American 
newspapers  daily  and  from  the  Mexican  telegraph 
office  he  telegraphs  his  untruthful  accounts  to 
Mexico  City.  He,  too,  is  a  trouble  breeder,  who 
might,  with  advantage,  be  watched  by  the  Depart- 
ment of  Justice. 

Although  several  reports  have  been  made  to  the 
United  States  Government  about  the  activities  of 
these  newspapers,  no  steps  have  been  taken  to  stop 
such  practices.  German  propaganda  is  a  sort  of 
international  dachshund  which  escapes  the  eyes  of 
the  dog  catchers  by  following  neutral  citizens  as 
soon  as  the  Germans  go  into  hiding. 

The  general  opinion  in  Mexico  City  I  found  to 
be  that,  as  a  group,  the  Germans  are  working  very 
quietly.  Many  of  these  German  citizens  are  re- 
lated to  Americans  and  they  correspond  freely 
with  residents  of  the  United  States.  They  re- 
ceive all  of  the  American  newspapers  and  mag- 
azines and  are  able  to  keep  almost  as  well  in- 
formed about  events  in  the  United  States  as  the 
German  Embassy  in  Washington  was  before 
diplomatic  relations  were  broken.  While  it  is  im- 
possible to-day  to  send  information  to  Berlin  from 
Mexico  by  wireless,  the  mail  route  via  Cuba  is 
still  open  to  Spain,  and  from  that  country  the 


60  MEXICO'S  DILEMMA 

German  representatives  have  the  use  of  an  Tin- 
censored  wireless. 

When  in  the  summer  of  1917  there  were  reports 
that  German  agents  in  Mexico  were  plotting 
against  the  United  States  President,  Carranza 
summoned  the  German  Minister  to  inform  him 
that  the  government  would  not  permit  attacks  on 
a  friendly  government  to  be  hatched  on  Mexican 
soil.  The  Germans  to-day  are  working  quietly 
with  but  one  object.  They  believe  that  after  the 
war,  when  the  real  fight  for  raw  materials  and 
commercial  supremacy  begins,  the  greatest  possi- 
bilities for  Germany  will  be  in  Mexico.  This 
country  has  many  of  the  raw  materials  which 
Germany  will  need,  and  the  Germans  figure  that 
it  will  be  easier  for  German  merchants  to  buy  in 
Mexico,  if  that  country  remains  neutral,  than  in 
any  of  the  lands  which  were  belligerents.  For 
this  reason,  alone,  it  is  highly  in  the  interests  of 
the  Kaiser's  Government  that  Mexico  remain 
friendly  to  Berlin.  It  is  generally  believed  in 
Mexico  that  one  of  the  factors  determining  Presi- 
dent Wilson's  policy  toward  that  country  was  the 
attitude  of  Latin- America.  The  Carranza  Govern- 
ment was  quick  to  recognise  this,  and  now  every- 
thing possible  is  being  done  to  fuse  the  bonds  be- 
tween Mexico  and  South  and  Central  America. 
Diplomats  from  the  nations  of  South  and  Central 
America  who  arrived  in  Mexico  during  my  stay 
were  accorded  the  most  enthusiastic  receptions. 
At  that  time  the  Republic  of  Argentine  sent  a  new 


REBELS  AND  REVOLUTIONS  61 

envoy.  When  he  arrived  at  Vera  Cruz  a  delega- 
tion of  Mexican  Ministers  and  officers  were  sent 
to  act  as  his  escort  to  the  capital.  In  the  big 
palace  at  the  port  the  incoming  diplomat  was  ten- 
dered a  banquet  at  which  several  speeches  were 
made  about  the  value  of  Latin-American  union. 
To  these  cordial  addresses  the  Argentinian  re- 
plied that  his  country,  too,  favoured  such  a  union. 

When  the  speaking  had  ended,  a  young  general 
(there  are  many  generals  under  thirty  in  Mexico) 
arose,  and  in  a  long,  hesitating,  after-dinner 
speech,  declared  that  he  believed  in  the  purposes 
of  such  a  union  but  considered  the  name  an  un- 
fortunate one. 

"I  propose, "  said  he,  "that  we  call  this  union 
a  Latin-Mexican  union  and  leave  the  America 
out." 

This  general  was  one  of  the  group  of  anti- 
American  army  officers  who  are  pro-German  and 
who  carry  around  chips  as  shoulder  straps. 

One  might  imagine  that  a  government  with  so 
many  internal  problems  to  solve  might  be  spared 
international  perplexities.  Not  so  in  Mexico. 
Mexico's  internal  strife  is  the  chief  cause  of  her 
international  disputes.  There  are  some  radical 
Mexicans  who  advocate  the  lynching  of  all  for- 
eigners. Others  desire  the  confiscation  of  all 
foreign  property.  This  group  of  radicals  was 
influential  enough  at  the  Queretaro  convention 
held  not  long  ago  to  insert  confiscatory  clauses 
in  the  constitution.  Some  Mexicans  will  state 


62  MEXICO'S  DILEMMA 

that  these  provisions  of  the  constitution  will  be 
enforced  some  day,  while  others  will  remark: 

"Oh,  but  what  is  a  constitution  among 
friends  ! ' ' 

Nevertheless  the  chief  obstacle  to  reconstruc- 
tion in  Mexico  to-day  is  the  lack  of  confidence  of 
foreign  investors  in  the  stability  and  honesty  of 
the  present  government.  As  long  as  there  are 
rebels  and  grafting  generals  about  the  country, 
and  so  long  as  the  present  government  holds 
property  confiscated  when  the  Constitutionalists 
were  a  de  facto  government,  foreigners  will  be 
sceptical  of  Mexico.  President  Carranza  and 
his  most  trusted  advisors  know  this  but  they  are 
still,  to  a  certain  degree,  hampered  by  the  radi- 
cals, who  know  nothing  and  care  less  about  inter- 
national obligations.  Where  it  is  possible  the 
present  government  is  returning  confiscated 
-property,  even  that  belonging  to  the  old  Cienti- 
ficos,  the  so-called  "  scientific  grafters "  of  the 
Diaz  regime. 

When  the  State  Department  sent  Mr.  George 
A.  Chamberlain  to  Mexico  City  to  reopen  the 
United  States  Consulate-General,  he  selected  a 
house  on  Avenida  Juarez  which  was  built  by  Senor 
Limantour,  Secretary  of  the  Treasury  under 
President  Diaz.  The  house  at  the  time  was  occu- 
pied by  General  Urquizo  under  confiscation  orders 
of  the  government.  Mr.  Chamberlain  told  the 
owners  he  wanted  to  rent  the  place  on  behalf  of 
the  United  States  Government.  General  Urquizo 


REBELS  AND  REVOLUTIONS  63 

was  ordered  to  evacuate.  When  he  turned  the 
residence  over  to  representatives  of  the  Liman- 
tour  estate,  who  were  to  rent  it  to  the  Consul  Gen- 
eral, the  palatial  home  itself  was  in  as  good  con- 
dition as  it  was  when  built,  although  all  the  ex- 
pensive furnishings  had  disappeared. 

While  I  was  at  the  capital  a  forestry  expert 
who  had  been  sent  to  Europe  years  ago  by  Diaz  to 
study  the  scientific  care  and  planting  of  trees 
and  shrubs  returned  to  Mexico  City.  President 
Carranza  sent  for  him  and  asked  him  to  head  the 
Forestry  Department  of  the  present  government. 

These  are  instances  which  indicate  a  new  pol- 
icy on  behalf  of  the  Carranza  Government.  Gov- 
ernment officials,  including  members  of  the  Cham- 
ber of  Deputies,  assured  me  that  the  government 
intended  to  return  all  confiscated  property  as 
soon  as  this  became  possible. 

The  Carranza  Government  is  to-day  operating 
the  tramways  of  Mexico  City  and  all  the  national 
railroads,  even  the  English  road  from  the  capital 
to  Vera  Cruz. 

Several  years  ago  there  were  many  street  car 
systems  in  Mexico  City,  all  in  miserable  condi- 
tion. Belgian,  English  and  French  investors  saw 
the  possibility  of  consolidating  these  lines  and 
the  Mexican  Tramways  Company  was  organised. 
The  same  investors  to-day  own  the  large  power 
plant  located  about  one  hundred  miles  from  the 
capital  at  Necaxa.  In  peace  time  this  station 
provided  all  the  electric  power  and  light  for  Mex- 


64  MEXICO'S  DILEMMA 

ico  City,  Pachuca,  El  Oro  and  other  cities.  The 
LigHt  and  Power  Company  and  the  Tramways 
Company  are  operated  as  distinct  corporations. 

Sometime  in  1914  the  Carranza  forces  "inter- 
vened" and  took  over  the  tramways  without  pay- 
ing the  investors  interest  or  compensation.  For 
over  two  years  the  power  company  furnished  the 
electricity  to  run  the  cars  free  of  charge.  This 
was  confiscated  property,  pure  and  simple. 

President  Carranza  saw  that  some  day  the 
tramways  would  have  to  be  returned  to  the  own- 
ers. He  was  informed  that  if  they  were  returned 
in  their  present  condition  the  company  might 
claim  millions  of  dollars  worth  of  damages.  So 
the  President  ousted  his  former  grafting  "inter- 
ventor"  and  appointed  a  young  engineer,  Senor 
Francisco  Cravioto,  as  director  on  behalf  of  the 
government,  responsible  to  Mr.  Carranza  alone. 
Since  Senor  Cravioto  has  been  in  office  he  has 
paid  instalments  on  the  electric  power  bills 
amounting,  up  to  midsummer  1917,  to  $40,000  a 
month,  and  he  has  turned  over  a  few  hundred 
thousand  pesos  to  pay  interest  on  the  foreign 
bonds  out  of  many  millions  owing.  Foreigners  in 
'Mexico  City  to-day  look  forward  to  the  time  when 
the  tramways  will  be  returned  to  the  owners  and 
the  old  debts  adjusted. 

This  is  pointed  out  by  the  most  optimistic  for- 
eigners as  an  example  of  what  treatment  foreign 
business  interests  may  expect  from  the  Carranza 


REBELS  AND  REVOLUTIONS  65 

Government  where  the  business  men  show  a  will- 
ingness to  co-operate. 

The  government  is  in  need  of  financial  assist- 
ance. All  problems  of  reconstruction  virtually 
rest  upon  the  possibilities  of  this  government  re- 
ceiving a  loan.  Granted  a  loan  of  $150,000,000 
the  most  reliable  foreigners  in  the  capital  believe 
that  Mexico  will  experience  more  prosperity  than 
it  did  under  the  Diaz  regime.  To-day  the  gov- 
ernment is  minting  gold  and  silver  as  fast  as 
possible  and  all  the  banks  in  the  Republic  are 
" granting "  so-called  "forced  loans'*  of  gold  and 
silver  which  they  have  on  deposit. 

These,  then,  are  some  of  the  problems  of  recon- 
struction in  Mexico.  The  nation  is  passing 
through  a  trying,  tempting  transition  period. 
Government  officials  have  had  practically  no  ex- 
perience directing  big  business  enterprises  or  in 
administrating  government  affairs.  Every  ele- 
ment which  has  in  the  past  contributed  to  failure 
is  present  in  Mexico  to-day  and  very  few  of  the 
requirements  of  success  are  to  be  found.  There 
are  hatred,  jealousy,  suspicion,  graft,  intrigue  and 
the  baneful  influence  of  "  relatives "  who  have 
been  appointed  to  office.  Patriotism,  sincerity, 
good-will,  faith,  honesty  and  confidence  are  lack- 
ing. But  despite  all  these  national  elements  the 
Carranza  party  is  the  strongest  one  in  Mexico, 
and  there  are,  I  repeat,  on  the  horizon  no  other 
parties  or  leaders  who  could  summon  the  support 
which  is  being  given  to  President  Carranza. 


66  MEXICO'S  DILEMMA 

As  I  have  just  said,  the  government  has  been 
seeking  the  friendship  of  the  nations  of  Latin  and 
Central  America.  But  the  "unkindest  cut  of  all" 
came  from  one  of  these  nations. 

In  the  United  States  it  is  understood  that  the 
revolution  was  started  against  Diaz,  the  "Dicta- 
tor, ' '  and  many  people  in  Mexico  will  tell  you  that 
the  greatest  benefit  of  the  revolution  was  the  over- 
throw of  the  '  '  Don  Porfirio. ' '  But  there  are,  per- 
haps, some  places  where  this  is  not  understood,  or 
if  it  is,  then  Uruguay  has  a  delightful  sense  of 
humour. 

One  of  the  things  the  present  government  has 
done  has  been  to  change  the  names  of  all  streets  in 
the  capital  named  after  saints.  Avenue  San  Fran- 
cisco, the  famous  business  thoroughfare,  is  called 
"Francisco  I.  Madero."  To  carry  out  the  gov- 
ernment policy  of  winning  the  Latin  countries 
"Calle  San  Agustin"  was  changed  to  "Calle  Uru- 
guay ' '  and  the  Uruguay  Government  was  officially 
notified  that  a  street  in  the  capital  had  been  named 
after  that  country. 

In  the  course  of  diplomatic  time,  which  is  meas 
ured  neither  in  hours  or  days  except  when  ulti- 
matums are  sent,  Uruguay  replied  that  it  was 
highly  honoured  by  the  act  of  the  Mexican  Govern- 
ment and  had  decided  to  change  the  name  of  one 
of  the  streets  in  their  capital  to  the  "Avenue  of 
Porfirio  Diaz ' '  in  honour  to  the  great  Eepublic  of 
Mexico ! 

Although   this   method   of  honouring   foreign 


REBELS  AND  REVOLUTIONS  67 

countries  is  frequently  exhibited  in  the  telephone 
books,  I  was  not  able  to  find  any  streets  named 
for  the  United  States.  I  passed,  on  several  occa- 
sions however,  a  bronze  statue  of  George  Wash- 
ington, two  blocks  from  the  American  Embassy  on 
the  Plaza  de  Dinamarca,  where  the  First  President 
of  the  United  States  stands  with  his  right  hand 
extended  and  his  left  holding  his  three-cornered 
hat.  But  the  bronze  table  which  tells  who  this  hero 
is  has  been  removed  and  George  Washington  to 
a  passer-by  might  be  any  one  of  a  number  of  local 
or  international  heroes. 


CHAPTER  IV 


GEKMANY'S  ALLY  AT  TAMPICO* 


AMERICAN  warships  are  stationed  at  Tam- 
pico  to-day  to  watch  Germany's  ally  in  Mex- 
ico.   From  time  to  time  one  of  them  lifts 
anchor,  steams  out  of  the  Panuco  River  and  pa- 
trols the  Gulf  Coast.    Suspicious  ships  are  exam- 
ined, wireless  messages  are  picked  up,  and  night 
and  day  the  trained  eyes  of  the  lookouts  search 
the  seas  for  hostile  periscopes.    When  one  returns 
the  other  slips  away  under  cover  of  darkness  to  a 
secret  destination. 

From  the  Government  wireless  tower  at  Arling- 
ton, Virginia,  the  Navy  Department  directs  the 
movement  of  these  ships  as  it  plans  Uncle  Sam's 
moves  on  the  great  international  oceanic  chess- 
board. Eternal  vigilance  is  the  price  of  peace  at 
Tampico,  the  greatest  oil  port  in  the  world.  From 
the  jungle  sixty  miles  away  flows  the  endless 
stream  that  propels  and  lubricates  the  Allied  mili- 
tary machine;  for  the  weapons  with  which  the 
United  States,  England  and  France  are  fighting 

*  A  friend  in  Mexico  City  wrote  the  author  that  the  article 
in  the  Saturday  Evening  Post  which  is  a  part  of  this  chapter 
was  not  permitted  to  be  circulated  in  the  Eepublic. 

68 


GERMANY'S  ALLY  AT  TAMPICO          69 

the  dictators  of  the  Central  Powers  in  European 
waters,  on  land  and  in  the  air,  are  dependent  upo'n 
Tampico  for  fuel  oil,  gasoline  and  lubrication. 

Because  Germany's  ally,  the  I.  W.  W.,  operates 
in  Tampico  our  battleships  cruise  in  Mexican  ter- 
ritorial waters  to  protect  this  oil  basin  without 
which  the  war  cannot  be  won. 

A  few  months  before  I  arrived  in  Mexico  agents 
of  the  Industrial  Workers  of  the  World  organised 
a  strike  along  the  docks  in  an  attempt  to  tie  up 
all  shipping  at  the  port  of  Tampico.  Money  was 
sent  from  New  York  by  German  agents  to  Tam- 
pico to  be  used  against  the  oil  companies  and  the 
Allies.  A  special  messenger  carrying  fourteen 
thousand  dollars  was  spotted  as  he  landed.  At 
that  time  the  quick  intervention  of  United  States 
naval  officers  and  the  co-operation  of  the  man- 
agers of  the  oil  companies  and  the  Mexican  au- 
thorities aborted  the  German  plot.  The  strike 
failed  and  the  I.  W.  W.  leaders  were  temporarily 
discredited ;  but  to-day  the  same  plotters,  inspired 
by  the  same  foreigners  and  financed  by  the  same 
interests,  are  working  through  the  Labourers' 
Union  and  the  Union  of  Port  Mechanics — the  I.  W. 
W.  in  sheep's  clothing.  I  found  them  preparing 
the  workers  for  another  lockout  by  urging  the  men 
to  strike  for  higher  wages,  though  the  wages  being 
paid  were  the  highest  in  the  world  for  this  kind 
of  labour.  The  I.  W.  W.  propaganda  is  as  lawless 
as  the  German  agitation  in  Russia,  but  always  one 


70  MEXICO'S  DILEMMA 

American  man-of-war  has  its  eyes  on  the  city. 
The  captain  in  command,  the  United  States  consul 
and  the  representatives  of  the  American  and 
British  oil  companies  are  watching,  working  and 
waiting. 

The  German-paid  Industrial  Workers  take  ad- 
vantage of  every  event  to  incite  the  labourers,  the 
poor  peon  puppets  of  the  ruthless  leaders.  They 
are  paid  and  inspired  by  German  influences,  as 
even  Herr  Mueller,  the  Austrian  consul,  acknowl- 
edged. When  the  governor  of  Arizona,  for  ex- 
ample, shipped  several  hundred  disloyal  miners 
out  of  his  state  the  following  appeal  was  printed 
and  scattered  through  the  streets  like  dirty  snow : 

WORKERS   AND   ENEMIES 

The  Union  of  Port  Mechanics  having  knowledge 
that  2,000  striking  mine  workers  of  Bisbee,  Ari- 
zona, U.  S.  A.,  have  been  deported  to  the  Her- 
manas  Desert,  New  Mexico,  being  thus  compelled 
by  force  of  rifles  and  machine  guns  to  desert  their 
families,  who  remain  there  by  the  lawless  work  of 
the  enemies  of  the  working  class  in  the  most 
frightful  misery  and  suffering  the  greatest  pri- 
vations : 

For  this  reason  this  Union,  in  a  spirit  of  human- 
itarianism  and  companionship,  PROTESTS  and 
CUESES  this  action  accomplished  by  the  steel 
kings,  and  publishes  its  discontent  publicly  against 
all  who  act  arbitrarily,  restricting  the  right  of 


THE  U.   S.    WARSHIPS  AT  ANCHOR  IN  TAMPICO   HARBOR. 
THEY  GUARANTEE  THE  OIL  SUPPLY  FOR  THE 
UNITED   STATES   AND  ENGLAND 


AN  OIL  GUSHER  AT  TAMPICO.      THIS  IS  THE  WAY  THE  OIL 
COMES  OUT  BEFORE  THE  WELL  IS   CAPPED 


GERMANY'S  ALLY  AT  TAMPICQ          71 

freedom  to  those  who  with  pride  call  themselves 
workmen. 
For  the  Union  of  Port  Mechanics. 

THE  COMMITTEE. 


AN  INJURY  TO   ONE   IS  AN   INJURY   TO  ALL 

In  addition  to  the  handbill  propaganda  the  I.  W. 
W.  publishes  one  daily  and  one  weekly  newspaper, 
and  the  editors  and  writers  have  all  come  from  the 
United  States  since  Congress  declared  war  against 
the  German  Government. 

But  the  I.  W.  W.  is  not  the  only  lawless  organ- 
isation with  which  the  oil  companies  have  to  con- 
tend. While  the  Carranza  Government  controls 
the  city  of  Tampico,  General  Don  Manuel  Pelaez, 
one  of  the  rebel  leaders,  is  the  king  of  the  oil 
fields.  President  Carranza 's  authority  extends 
only  eight  miles  from  the  city  limits  and  along 
the  railway  line  to  Monterey,  the  industrial  city 
in  Northern  Mexico.  The  direct  railway  line  from 
Tampico  to  Mexico  City  is  blocked.  Senor  Car- 
ranza's  officials  control  the  docks  and  the  tank 
reservoirs  near  the  city.  On  the  other  side  of  the 
Neutral  Zone,  or  Mexico's  No  Man's  Land,  watch 
the  Pelaez  soldiers.  General  Pelaez  controls  the 
beginning,  President  Carranza  the  end,  of  the  oil 
business.  Pelaez  taxes  the  production ;  Carranza 
taxes  the  exportation.  Pelaez  and  his  army — esti- 
mated at  three  thousand  to  twenty-seven  thousand 
men,  depending  upon  the  authority  quoted — get 


72  MEXICO'S  DILEMMA 

forty  thousand  dollars  a  month  protection  money 
from  the  oil  companies.  Carranza  gets  one  hun- 
dred thousand  dollars  in  taxes  every  month  from 
the  Standard  Oil  Company;  two  hundred  thou- 
sand dollars  a  month  from  the  Huasteca  Petro- 
leum Company,  and  more  from  the  Lord  Cowdray 
interests.  The  oil  producers  maintain  Pelaez,  his 
soldiers  and  his  government,  and  they  contribute 
more  than  any  other  foreign  interest  toward  the 
revenues  of  the  present  Mexican  Government. 

But — and  this  is  where  the  story  of  King  Pelaez 
begins — the  trouble  at  Tampico  has  not  been  in 
the  territory  controlled  by  the  bandit,  but  within 
the  city  limits,  dominated  by  the  central  govern- 
ment. There  have  been  no  strikes  in  the  oil  dis- 
tricts where  this  black,  crude  product  gushes  from 
the  earth  at  the  rate  of  nearly  a  million  barrels  a 
day.  No  American  lives  have  been  lost ;  no  Amer- 
ican or  European  property  has  been  destroyed. 

In  Tampico  itself  strikes  have  occurred  and  may 
develop  at  any  time.  No  one  can  tell  what  a  com- 
bination of  I.  W.  W.  agitators  and  German  in- 
triguers may  do.  But  the  curious  thing  is  that 
the  oil  companies  are  satisfied. 

"We  believe,"  remarked  one  of  the  managers, 
"and  the  United  States  believes,  that  as  long  as 
we  are  at  war  with  Germany  it  is  best  to  leave 
well  enough  alone.  We  are  getting  oil  out  of 
Mexico.  That  is  our  part.  That  is  what  the 
United  States  and  Great  Britain  want.  That  is 
what  the  companies  want." 


GERMANY'S  ALLY  AT  TAMPICO          73 

1  '  But  how  are  you  going  to  adjust  this  situation 
finally  ?"  I  asked. 

"Quien  sabe?"  they  answered.  They  don't 
know.  No  one  else  seems  to  know.  But  of  this 
they  are  certain:  They  don't  want  President 
Carranza  to  control  the  oil  fields,  especially  dur- 
ing the  war.  They  fear  that  if  his  generals  con- 
trol the  wells  they  will  submit  to  German  influ- 
ence and  demand  a  prohibitive  tax  under  threat 
of  cutting  the  pipe  lines.  The  oil  companies  are 
opposed  to  the  policy  of  the  United  States  Gov- 
ernment in  lifting  the  embargo  on  war  material, 
because  they  maintain  that  if  the  present  govern- 
ment begins  an  attack  upon  Pelaez  the  oil  com- 
panies will  suffer.  They  declare  that  the  only 
thing  that  maintains  peace  is  the  lack  of  ammuni- 
tion. 

Time  was  when  the  oil  interests  were  under  the 
thumb  of  General  Pelaez.  To-day  Pelaez  and  his 
chief  insurgent,  General  Enriquez,  are  ruled  by 
the  companies ;  but  the  relations,  at  that,  are  very 
cordial,  though  some  of  the  smaller  oil  companies 
do  not  feel  this  way. 

I  was  sauntering  through  the  hot  streets  en 
route  to  my  hotel  one  day  when  I  met  the  secre- 
tary of  one  of  the  small  but  important  companies. 

"I  have  some  documents  that  may  interest 
you,"  he  said,  "providing  the  name  of  our  com- 
pany is  not  used.  We  have  just  been  held  up  for 
six  thousand  dollars." 

I  accompanied  him  to  his  office,  where  he  showed 


74  MEXICO'S  DILEMMA 

me  the  correspondence  he  had  had  with  General 
Enriquez,  the  so-called  brains  of  the  Pelaez  Gov- 
ernment because  he  is  the  only  educated  man  on 
the  rebel  leader's  staff. 

One  of  the  notices  in  Spanish,  as  translated, 
reads : 

REVOLUTIONARY   ARMY 

Pelaez  Division  Military  Command 

CIRCULAR 

I  beg  to  advise  you  gentlemen  that  twelve  days 
are  conceded  to  you,  counting  from  this  date,  in 
order  that  you  may  please  cover  your  debts  which 
you  have  pending  with  this  military  command. 
It  is  understood  that  if  the  same  are  not  paid 
within  the  term  specified  that  I  shall  be  obliged 
to  proceed  in  a  manner  I  may  deem  convenient. 

LIBERTY,    JUSTICE   AND  LAW 

Juan  Casiano,  Mex.,  August  First. 

ENRIQUEZ. 

The  three  impressive  words — Liberty,  Justice, 
Law — make  up  the  motto  of  the  Pelaez  Govern- 
ment. Though  one  is  tempted  to  look  for  prac- 
tical evidences  of  the  motto,  one  does  not,  because 
it  might  not  be  safe !  Explorations  in  an  oil  jun- 
gle should  be  limited  to  oil.  At  least  that  is  what 
I  was  advised. 

It  is  not  safe,  either,  to  send  money  to  Pelaez 
or  Enriquez,  except  by  trusted  messenger.  The 


GERMANY'S  ALLY  AT  TAMPICO          75 

danger  is  not  so  much  that  the  money  might  be 
lost  or  stolen  as  that  some  government  authority 
might  hear  of  it  and  you  might  be  arrested  for 
giving  aid  and  comfort  to  an  enemy  of  the  Mex- 
ican Government.  The  cautious  policy  is  always 
the  safest  in  Mexico.  This  company,  of  course, 
knew  the  rules  of  the  game  and  despatched  the 
twelve  thousand  pesos  to  Enriquez.  A  note  thank- 
ing the  general  for  his  services  in  protecting  the 
company's  properties  accompanied  the  tribute. 
A  few  days  later  General  Enriquez  acknowledged 
it  in  the  following  manner : 

Appreciable  Sir:  I  take  note  of  your  courteous 
letter  of  the  second  instant,  and  in  reply  I  wish 
to  state  that  I  take  pleasure  in  offering  myself  to 
your  orders. 

Your  true  and  attentive  servant, 

ENRIQUEZ. 

A  few  months  before  this  when  conditions  were 
less  settled — one  might  say  less  unsettled,  too — 
King  Pelaez  used  to  require  unusually  large  sums 
at  irregular  intervals.  But  this  was  not  an  ap- 
proved business  method  in  the  United  States,  so 
it  was  explained  to  Pelaez,  who  a  few  years  ago 
was  an  ignorant  rancher,  and  Pelaez  was  con- 
vinced that  he  should  receive  his  taxes  regularly, 
as  all  governments  do.  Pelaez  has  a  teachable 
mind! 

One  time  Pelaez  demanded  twenty  thousand 


76  MEXICO'S  DILEMMA 

dollars  from  one  of  the  companies.  The  corpora- 
tion had  already  paid  a  large  sum  and  could  not 
afford  to  meet  his  requirements ;  but  Pelaez  was, 
at  the  time,  an  unlimited  monarch.  He  made  war 
or  peace  as  freely  as  the  German  Kaiser.  And 
inasmuch  as  Pelaez  had  the  army  to  destroy  the 
company's  wells  the  treasurer  knew  the  taxes  had 
to  be  paid,  so  he  bought  twenty  thousand  dollars 
in  counterfeit  money  and  gave  it  to  Pelaez.  The 
general  did  not  examine  the  bills,  and  everything 
was  satisfactory. 

The  next  day  Pelaez  paid  his  soldiers,  and  when 
they  attempted  to  pass  it  in  the  small  villages  the 
shopkeepers  refused  anything  but  metal  coin. 
The  general  notified  the  treasurer  and  demanded 
real  money  immediately.  The  treasurer  explained 
that  he  could  not  come  to  camp  for  several  days 
but  that  he  would  adjust  the  matter.  It  was  quite 
evident  that  a  mistake  had  been  made ! 

Three  days  later  he  appeared  at  Pelaez 's  head- 
quarters. 

4  *  Where  is  that  money? "  he  asked. 

Pelaez  handed  it  back.  The  treasurer  took  from 
"his  pocket  a  rubber  stamp  that  he  had  had  made 
and,  one  by  one,  stamped  each  bill  with  the  fol- 
lowing: 

MONEY  OF  THE  PELAEZ  GOVERNMENT.    GOOD. 

"Now  if  you  can't  get  your  soldiers  to  accept 
this  money  of  your  own  government,"  the  treas- 


GERMANY'S  ALLY  AT  TAMPICO          77 

urer  stated,  "I  don't  think  much  of  your  govern- 
ment. " 

Pelaez  was  impressed.  All  governments  should 
have  their  own  currency.  Now  Pelaez  had  his! 
The  soldiers  accepted  the  money,  and  so  did  the 
shopkeepers!  The  twenty  thousand  dollars  cost 
the  treasurer  two  hundred  dollars. 

But  not  even  a  peon  king  can  be  fooled  the  same 
way  twice.  Another  company  tried  to  give  Pelaez 
counterfeit  money,  but  this  brought  the  following 
notice  to  all  companies  from  General  Enriquez: 

REVOLUTIONARY  ARMY 

Pelaez  Division  Military  Command 

CIRCULAR 

In  view  of  the  fact  that  in  the  circulation  of 
the  new  ten-dollar  gold  pieces — twenty  pesos- 
many  counterfeit  coins  are  coming  out,  I  have  to 
request  of  you  gentlemen  that  in  the  future  you 
will  please  make  your  payments  in  coins  of  prior 
coinage  or  in  five-peso  pieces. 

LIBERTY,   JUSTICE  AND  LAW 

ENRIQUEZ. 
Juan  Casiano,  Mexico,  August  1,  1917. 

These  are  only  a  few  of  the  many  interesting 
circulars  and  Betters  that  were  shown  me  by  the 
oil  companies.  One  does  not  wonder  why  the  com- 
panies do  not  protest  when  one  learns  how  im- 


78  MEXICO'S  DILEMMA 

portant  the  protection  by  Pelaez  and  his  band  of 
bandits  is.  These  figures,  taken  from  the  records 
of  the  United  States  consulate  at  Tampico  as  fur- 
nished to  the  State  Department  by  Claude  I.  Daw- 
son,  the  consul,  show  that  during  the  first  six 
months  of  last  year  24,376,824  barrels  of  oil  in  all 
forms  were  exported. 

An  illuminating  table  follows  on  page  79. 

This  calculation,  however,  is  far  below  the  pos- 
sible production  of  the  Tampico  fields.  With  the 
present  equipment,  pipe  lines,  pumping  stations 
and  wells  the  oil  companies  operating  can  produce 
as  much  as  a  million  barrels  of  oil  a  day,  but  if 
any  more  oil  were  produced  there  would  be  no 
ships  to  carry  it  away.  The  submarine  losses  are 
felt  in  Tampico  too. 

A  million  barrels  of  oil  every  twenty-four  hours 
— enough,  seemingly,  to  fill  the  Hudson  Eiver,  if 
the  basin  of  that  river  off  Manhattan  Island  ever 
went  dry ! 

The  largest  producing  companies  in  the  Tam- 
pico district  are  El  Aguila,  the  Mexican  Eagle 
Company,  belonging  to  Lord  Cowdray,  and  the 
Huasteca  Petroleum  Company,  founded  by  Mr. 
E.  L.  Doheny,  of  Los  Angeles.  These  two  cor- 
porations have  the  most  wells  and  the  largest 
wells,  measured  by  daily  capacity.  Both  com- 
panies have  big  camps  in  the  oil  jungle.  At  the 
Cowdray  camp  at  Terra  Armeria  General  Pelaez 
lives  with  his  staff  and  soldiers.  General  Enri- 
quez  and  his  staff  live  at  Juan  Casiano,  the  big- 


GERMANY'S  ALLY  AT  TAMPICO 


79 


TOTAL  OIL  SHIPPED  FROM  fTAMPICO,  JANUARY 
TO  JUNE,  1917,  INCLUSIVE 

Statement  Prepared  by  Mr.  Claude  I.  Dawson,  U.  8. 
Consul  at  Tampico 

BARRELS 
Crude  Oil    Distillate     Reduced      Topped    Kerosene 


January,  1917 

United  States 2,018,733 

Mexico 176,218 

Foreign  Countries 234,799 

Total 2,429,750 

February,  1917 

United  States 2,081 ,245 

Mexico 400,424 

Foreign  Countries 494,027 

Total 2,975,696 

March,  1917 

United  States 3,087,903 

Mexico 403,832 

Foreign  Countries 589,716 

Total 4,081,451 

April,  1917 

United  States 2,849,994 

Mexico 271,134 

Foreign  Countries 866,407 

Total 3,987,535 

May,  1917 

United  States 3,072,181 

Mexico 281,296 

Foreign  Countries 445,023 

Total 3,798,500 

June,  1917 

United  States 2,719,520 

Mexico 298,594 

Foreign  Countries 523,182 

Total . .              .  3,541,296 


414,100        105,500          19,000 


70,000       357,700 


59,000       557,750         60,000 


128,000       443,000         61,000 


90,000       407,546         40,000 


135,000       494,000         73,000-48,000 


Total 20,814,228       896,100    2,365,496 

Grand  Total.  . .  24,376,824  barrels 


253,000-48,000 


80  MEXICO'S  DILEMMA 

gest  Doheny  camp.  The  Standard  Oil  Company, 
the  Mexican  Gulf  Company  and  the  Texas  Com- 
pany are  the  largest  refiners  of  oil.  They  pur- 
chase the  crude  oil  from  many  of  the  small  pro- 
ducers and  make  gasoline,  fuel  oil,  kerosene  and 
thirty  other  products,  which  they  ship  to  all  parts 
of  the  world. 

"Who  is  Pelaez?"  I  asked  in  Tampico. 

"An  ignorant  Mexican  rancher, "  was  the  uni- 
versal reply.  "He  is  a  revolutionist,  like  all  of 
us,  against  the  Carranza  Government.  He  has  a 
loyal  army  that  protects  our  property  and  work- 
ers. Pelaez  is  king  of  the  police  in  the  oil  dis- 
tricts. " 

"And  Enriquez?"  I  questioned. 

"A  Mexican  doctor,"  answered  the  foreigners, 
"cultured,  educated,  refined,  and  a  thorough  gen- 
tleman. He  had  a  drug  store  in  Tuxpan — another 
port  on  the  Gulf  of  Mexico,  pronounced  as  if 
spelled  T-u-s-p-a-n.  When  the  revolution  broke 
out  the  Carranza  troops  burned  his  store.  He  lost 
forty  thousand  pesos  and  joined  the  forces  against 
the  First  Chief  of  the  Constitutionalists.  He  is 
fighting  in  the  field  to-day,  awaiting  the  time  when 
a  responsible  government  will  be  established  in 
Mexico  City.  Then  he  will  go  back  into  business. ' ' 

I  was  talking  to  one  of  the  producers  one  day 
when  he  asked  whether  I  would  like  to  meet  Pelaez 
and  Enriquez. 

"The  oil  king?"  I  asked.  "Certainly!  Long 
live  the  king!" 


THE  GUSHER  OF  THE  CERRO  AZUL  OIL  WELL — 6OO  FEET  HIGH 


GERMANY'S  ALLY  AT  TAMPICO          81 

When  one  is  in  Mexico  one  must  do  as  the 
Mexicans  do!  One  must  shout  "Long  live  Pe- 
laez!"  when  one  is  in  his  territory. 

It  is  a  safe  policy  anyway  always  to  be  Mex- 
ican to  a  Mexican.  I  was  lunching  one  day  with 
an  American  official  who  had  been  sent  into  this 
country  to  meet  the  various  factions.  He  told 
me  the  difficulties  he  had  in  being  Mexican,  but 
he  said  it  paid  him,  and  he  cited  the  following 
instance : 

He  was  in  a  small  coast  town,  where  he  called 
to  pay  his  respects  to  the  governor.  He  desired 
a  friendly  talk  and  knew  the  best  place  would  be 
about  a  banquet  table,  so  he  invited  the  general 
and  his  staff  to  dinner.  The  officer  was  bashful. 
That,  indeed,  was  unusual.  The  general  sent 
word  that  while  he  would  enjoy  lunching  with 
American  officers  he  was  compelled  to  excuse  him- 
self because  he  had  not  been  trained  to  dine  with 
such  high  personages!  The  American  and  his 
staff  were  shocked  upon  finding  a  general  who  did 
not  proclaim  hourly  what  a  great,  accomplished 
gentleman  he  was  even  if,  two  years  ago,  he  was 
a  night  watchman  in  Vera  Cruz.  The  Americans 
urged  the  general  to  come,  and  he  did. 

Before  the  guests  arrived  the  visitors  held  a 
conference  and  the  chief  said: 

"General  Blank,  commander  of  the  State  of 
Blank,  is  coming  to  dinner  to-night.  I  want  every 
one  of  you  gentlemen  to  take  your  table  manners 
from  him.  If  he  eats  soup  with  tortillas,  chicken 


82  MEXICO'S  DILEMMA 

with  his  fingers  and  drinks  out  of  the  finger  bowl, 
every  man  does  the  same !  The  guests  are  not  to 
be  embarrassed." 

The  Americans,  in  a  cordial  but  not  a  very  pol- 
ished manner,  welcomed  the  Mexicans.  At  the 
table  there  was  a  great  deal  of  talking  at  first, 
and  every  one  waited  for  the  general  to  begin  to 
eat.  But  he  didn't!  And  they  waited  a  little 
longer,  until  the  soup  was  cooled.  Finally  the 
American  official,  who  had  been  in  Mexico  long 
enough  to  know  that  one  must  do  as  the  Mexicans 
do,  drank  his  soup.  Without  a  smile  or  a  mur- 
mur every  one  did  the  same.  When  the  meat  was 
served  fingers  and  knives  were  used,  and  at  the 
close  of  the  meal  toothpicks  instead  of  finger  bowls 
were  passed.  The  general  was  delighted  to  think 
that  he  could  eat  with  Americans  and  be  so  con- 
tented !  To  this  day  he  is  pro- American ! 

I  had  been  in  Mexico  several  weeks,  and  when 
an  opportunity  came  to  see  a  live  bandit  I  was 
enthusiastic,  and  I  got  up  as  early  on  the  morn- 
ing we  left  as  I  did  years  ago  when  the  circus 
came  to  Richmond,  Indiana. 

To  reach  the  Mexican  oil  fields  one  must  travel 
between  sixty  and  eighty  miles  south  of  Tampico. 
At  the  wharf  one  boards  a  fast  gasoline  launch 
at  sunrise  and  travels  through  the  canal  and 
Panuco  Eiver  some  twenty  miles  to  a  landing  sta- 
tion belonging  to  one  of  the  oil  companies.  Eight 
miles  out  of  the  city  one  meets  a  band  of  eight 
Carranza  soldiers.  They  are  on  outpost  duty  to 


GERMANY'S  ALLY  AT  TAMPICO          83 

see  that  no  Pelaez  followers  enter  the  city.  From 
this  point  on  one  need  not  say,  "This  belongs  to 
one  of  the  oil  companies,"  because  everything  be- 
low, above  and  on  the  earth  belongs  to  some  oil 
concern.  The  Lord  Cowdray  and  the  Doheny  cor- 
porations have  more  than  a  million  acres  each. 

From  this  small  dock  one  rides  by  automobile 
twenty  miles  farther  into  the  jungle,  over  the  only 
wagon  road  in  this  part  of  Mexico.  Another 
launch  takes  one  across  Lake  Tamiahua  to  San 
Geronimo.  As  one  glides  through  the  quiet  waters 
early  in  the  day  one  sees  thousands  of  flying  fish, 
and  at  times  the  horizon  is  blackened  with  wild 
duck.  There  is  so  much  game  and  there  are  so 
few  hunters  that  this  is  an  undreamed-of  para- 
dise. 

As  the  launch  swerves  toward  the  dock  one  sees 
several  hundred  Mexican  labourers  standing  about 
the  narrow-gauge  railway  track,  awaiting  the  de- 
parture of  the  work  train  for  the  fields. 

Puffing  along  at  eight  miles  an  hour  the  dummy 
engine  jerks  and  whines  through  the  jungle  to  the 
camp  at  Juan  Casiano.  Beside  the  tracks  one  sees 
mahogany  and  oak  trees,  banana  plants,  orange 
groves,  cornfields,  and  here  and  there  the  straw- 
thatched  roof  of  a  peon's  home.  Men  and  women 
are  dressed  in  one-piece  garments;  many  chil- 
dren are  naked;  others  like  one  boy  I  saw  with 
his  mother's  shirtwaist  hanging  loosely  from  his 
shoulders. 

Spanish  moss,  orchids  and  other  plants  grow  as 


84  MEXICO'S  DILEMMA 

parasites  over  the  trees,  many  of  which  are  being 
strangled  to  death  by  this  growth.  Many  parts 
of  this  territory  have  never  been  explored.  Wild 
beasts  rule  the  forests  and  hills.  There  are  wild 
boars  and  snakes.  Sometimes  the  latter  come  up 
on  the  railway  bed  for  their  sun  nap.  There  are 
buzzards,  the  prehistoric  scavengers,  and  Alice- 
blue  butterflies.  Beautiful  birds  of  the  tropics  fly 
from  bush  to  bush.  Some  places  along  the  line 
the  natives  have  planted  corn.  Their  cattle  graze 
along  the  roadway,  and  frequently  the  train  stops 
to  give  the  cows  time  to  get  off  the  track.  Fields 
are  so  fertile  that  the  corn  averages  more  than 
twelve  feet  in  height. 

The  planting  is  as  primitive  as  the  people  are. 
The  natives  punch  a  hole  in  the  earth  with  a  stick, 
drop  a  grain  of  corn  and  cover  it  up.  In  two 
months  they  can  gather  the  ears. 

After  one  has  travelled  a  few  miles  by  train 
one  enters  the  oil  fields.  Between  the  hills  of  the 
rolling  country  one  sees  the  derricks  where  wells 
are  being  drilled.  When  the  oil  begins  to  gush 
out  of  the  hole  it  is  diverted  into  pipe  lines,  which 
carry  it  sixty  miles  to  Tampico. 

Geologists  estimate  that  this  country  for  cen- 
turies has  floated  on  oil — but  less  than  eighteen 
years  ago  American  explorers  tapped  the  first 
well.  At  that  time  there  was  only  one  company 
in  the  field.  To-day  there  are  more  than  a  score. 
Then  the  land  could  be  purchased  for  less  than 
fifty  cents  an  acre.  To-day  the  cheapest  available 


GERMANY'S  ALLY  AT  TAMPICO          85 

land  rents  for  five  hundred  dollars  an  acre  per 
year,  and  the  owners  demand  royalty  on  oil  that 
may  be  extracted.  The  largest  well  ever  discov- 
ered produced  a  million  barrels  a  day,  but  only 
for  five  days.  To-day  boiling  water  gushes  out 
into  the  lake.  The  next  largest  well  is  that  of 
Cerro  Azul.  Its  capacity  is  estimated  at  two  hun- 
dred and  sixty  thousand  barrels  every  twenty- 
four  hours.  It  has  been  running  steadily  since 
1914.  The  best  wells  produce  more  than  sixty 
thousand  barrels  a  day,  and  no  well  is  considered 
very  productive  that  does  not  give  up  ten  thou- 
sand barrels  between  sunrise  and  sunrise.  There 
is  so  much  oil  in  Mexico  that  it  gushes  out  of  the 
ground  as  soon  as  a  hole  from  two  to  three  thou- 
sand feet  deep  has  been  drilled  into  the  mud,  lime- 
stone and  sand.  Some  gushers  have  spouted  oil  six 
hundred  and  a  thousand  feet  into  the  air  before 
they  were  capped.  One  well  emptied  more  than 
a  million  barrels  into  one  of  the  valleys  before  it 
was  capped. 

From  the  railroad  station  we  rode  to  the  camp 
in  a  buckboard  pulled  by  four  mules.  As  the 
driver  drew  the  reins  General  Enriquez  saluted 
us.  At  last  we  were  at  one  of  the  headquarters 
of  the  bandits.  With  Enriquez  were  his  chief  of 
staff,  an  Indian  general,  interpreters  and  soldiers. 
The  general  is  short,  heavily  built  and  dark  com- 
plexioned.  He  has  long  thin  fingers,  small  feet 
and  dark  brown  eyes.  He  wore  a  brown  army 
shirt,  riding  breeches  and  tan  boots.  Bound  his 


86  MEXICO'S  DILEMMA 

instep  were  buckled  heavy,  hand-engraved  silver 
spurs.  From  the  cartridge  belt  hung  a  forty- 
eight-calibre  revolver. 

We  sauntered  uphill  to  Enriquez 's  headquar- 
ters. Bill,  the  guide,  Enriquez  and  I  sat  on  the 
general's  bed.  The  three  chairs  were  occupied 
by  his  staff.  Pelaez  had  been  there  for  a  confer- 
ence the  night  before  but  had  left  for  the  Cowdray 
camp  at  dawn.  The  conversation  began  with  Car- 
ranza and  ended  with  the  President.  But  most 
of  the  talking  was  done  by  an  Indian  general  who 
had  just  returned  from  a  thirty-five-day  hunt  for 
Indians  and  others  loyal  to  Carranza.  His  im- 
agination was  as  unlimited  as  the  oil  fields  and 
he  gloried  in  having  a  foreign  audience.  His  last 
battle  was  his  most  thrilling  one. 

It  happened  in  this  way :  The  Mexican  Govern- 
ment sent  rifles  and  ammunition  to  General  Ma- 
riel,  one  of  the  Carranza  leaders  along  the  Gulf 
of  Mexico,  who  immediately  armed  the  half- 
civilised  Teptzintla  and  Santa  Maria  Indians. 
These  wild  men  started  to  raid  the  outskirts  of 
the  oil  district  and  Enriquez 's  Indian  general  with 
a-band  of  troopers  was  sent  out  to  halt  them.  In 
thirty-five  days  of  wilderness  fighting  two  hun- 
dred Indians  were  accounted  for,  and  then  the 
general  entered  a  small  town  where  he  found  seven 
bandits — he  called  the  Carranza  troops  bandits- 
terrorising  the  village.  Five  were  killed  in  the 
first  skirmish,  but  the  general  was  shot  four  times 
in  his  right  knee  and  one  of  his  soldiers  was  killed. 


GERMANY'S  ALLY  AT  TAMPICO         87 

A  Carranza  soldier,  he  said,  emptied  his  auto- 
matic into  the  side  of  the  trooper  and  then  shoved 
the  pistol  into  the  wound.  When  the  remaining 
two  were  captured  they  were  executed. 

The  general  told  almost  unbelievable  tales.  He 
said  the  wild  Indians  in  a  war  dance,  a  few  days 
before  he  arrived,  had  thrown  women  into  the 
flames  as  sacrifices.  This  is  the  Liberty,  Justice 
and  Law  of  the  oil  jungle ! 

For  the  benefit  of  the  auto  owner  who,  like  my- 
self, did  not  know  how  gasoline  is  produced,  per- 
mit me  to  make  this  explanation:  The  crude  oil 
as  it  comes  from  the  earth  is  pumped  to  Tampico, 
where  the  refineries  are  located.  Some  is  shipped 
to  refineries  in  the  United  States.  This  oil  is 
heated  in  large  tanks  to  three  hundred  and  fifty 
degrees.  From  these  tanks  it  flows  into  cooling 
tanks;  the  heavy  oil  goes  to  the  bottom  and  the 
vapour,  or  gasoline,  flows  out  near  the  top.  Gaso- 
line is  but  the  light  ingredient  of  heavy  mineral 
oil. 

When  the  crude  oil  reaches  Tampico  the  trouble 
begins.  The  Mexican  Government  taxes  crude  oil, 
gasoline,  distillate  and  other  by-products  so  heav- 
ily and  the  expenses  of  shipping  it  to  England 
and  the  United  States  are  so  great  that  crude  oil 
which  costs  twenty  cents  a  barrel  in  Tampico  must 
sell  for  sixty  cents  a  barrel  in  Texas. 

All  the  oil  ships  in  and  out  of  Tampico  must  go 
through  the  Panuco  Eiver,  which  flows  into  the 
gulf  seven  miles  from  the  eity.  The  river  must 


88  MEXICO'S  DILEMMA 

be  dredged  constantly  to  enable  the  ocean-going 
liners  to  reach  the  docks.  Throughout  the  revolu- 
tion all  oil  companies  have  been  paying  six  cents  a 
barrel  bar  tax  to  keep  the  river  deep  enough  for 
their  ships,  but  for  nearly  four  years  little  dredg- 
ing has  been  done. 

A  few  months  ago  the  central  government  noti- 
fied the  oil  companies  that  an  American  dredging 
concern  had  been  engaged  to  work  in  the  river 
and  that  the  oil  companies  would  have  to  pay  the 
costs,  amounting  to  one  hundred  thousand  dollars 
a  month. 

With  conditions  so  unsettled  and  dangers  lurk- 
ing in  every  business  deal  the  oil  companies  to- 
day are  doing  no  development  work.  They  are 
taking  no  chances.  They  believe  that  Article 
Twenty-seven  of  the  Mexican  Constitution  permits 
the  government  to  confiscate  their  property  and 
they  declare  that  they  cannot  afford  to  spend  more 
money  in  Tampico  until  they  know  how  the  gov- 
ernment intends  to  interpret  this. 

The  companies  are  literally  between  the  jungle 
and  the  sea.  No  one  knows  what  move  the  Car- 
ranza  Government  may  make.  No  one  knows  what 
steps  the  United  States  and  the  Allies  will  take 
to  protect  the  oil  country  if  the  central  govern- 
ment begins  an  invasion,  as  President  Carranza 
announced  it  would  do,  in  his  speech  before  Con- 
gress on  September  3,  1917.  At  the  opening  of 
Parliament  he  proclaimed  his  intention  of  driving 
the  rebels  out  of  the  oil  fields.  "They  have  been 


GERMANY'S  ALLY  AT  TAMPICO          89 

supported  by  foreign  oil  companies, "  he  declared. 
There  is  no  doubt  about  the  truth  of  this  latter 
statement,  but  the  companies  maintain  that  if  the 
fields  were  in  the  hands  of  the  Mexican  Govern- 
ment the  government  could  maintain  a  strangle 
hold  on  the  Allies — and  Pelaez,  they  declare,  is 
pro-Ally.  The  oil  companies  want  a  status  quo 
until  the  war  in  Europe  is  over.  Then,  and  per- 
haps sooner,  the  real  fight  about  Tampico  will  be- 
gin. This  part  of  the  Mexican  problem  is  not 
settled. 

But  on  the  surface  of  things  in  Tampico  there 
is  not  a  ripple.  Pelaez  cannot  come  into  the  city 
and  the  Carranza  forces  cannot  go  into  the  coun- 
try without  a  fight.  No  Man's  Land  separates  the 
belligerents  here  as  it  does  in  France. 

The  I.  W.  W.  and  the  Germans  are  taking  ad- 
vantage of  this  chaotic  situation,  and  they  are 
preparing  for  eventualities.  Some  day  there  will 
be  a  clash  in  the  oil  fields  or  in  Tampico,  and  when 
that  hour  comes  the  world  will  learn  whether  Ger- 
many 's  ally  or  the  United  States  and  her  Allies 
control  the  situation. 

Further  trouble  in  Tampico  or  in  the  oil  dis- 
tricts will  benefit  Germany  directly  because  it  will 
affect  the  oil  supply  of  the  United  States  and 
Great  Britain. 

No  one  seems  to  know  the  solution  in  Tampico, 
but  every  foreigner  hopes  that  the  ammunition 
which  the  Mexican  Government  has  obtained  from 
the  United  States  will  not  reach  the  Gulf  of  Mex- 


90  MEXICO'S  DILEMMA 

ico.  The  foreigners  want  a  status  quo  until  Ger- 
many is  defeated.  Then,  then  indeed,  something 
will  have  to  be  done  to  settle  the  jurisdiction  over 
the  oil  territory.  Tampico  oil  is  a  world  neces- 
sity. Anarchy,  another  German  ally,  cannot  rule 
forever.  Where  there  are  smouldering  flames  of 
discontent  there  will  be  smoke. 

Before  I  went  to  Tampico  the  Chief  Mexican 
Manager  of  one  of  the  largest  oil  producing  com- 
panies gave  me  a  memorandum  regarding  the  oil 
supplies  of  the  Allied  powers.  I  print  this  here 
as  it  contains  a  great  deal  of  valuable  information 
and  shows  how  vital  Tampico  is  to  England  and 
the  United  States  in  the  war  against  Germany. 

The  writer  is  a  man  of  very  firm  convictions 
and  the  interpretations  of  clauses  in  the  Mexican 
Constitution  and  his  opinions  regarding  the  gov- 
ernment are  his,  not  mine!  I  present  the  mem- 
orandum here  because  it  is  the  statement  of  an 
expert. 


MEMOEANDUM.     THE  ALLIES'  OIL  SUPPLIES 

By  an  American  Business  Man 

1.  Petroleum  and  gasoline  are  the  two  most 
important  war  materials  to-day.     Neither  aero- 
planes, tanks,  motor  trucks,  submarines,  chasers, 
destroyers  nor  battleships  can  run  one  foot  with- 
out one  or  the  other. 

2.  To  survey  the  world's  production  of  crude 


GERMANY'S  ALLY  AT  TAMPICO 


91 


oil,  necessary  for  the  manufacture  of  gasoline, 
Diesel  oil  and  navy  fuel : 

The  Dutch  East  Indies  and  Burmah:  Too  far 
away  to  serve  as  a  source  of  supply  in  the  present 
shortage  of  tank  steamers. 

Persia:  Eemote,  and  on  the  Mediterranean 
route.  Submarines  have  destroyed  many  tankers 
on  this  route.  Production  small. 

Russian  Fields:  Available  only  to  the  Eussian 
Allies. 

Roumania:    In  German  hands. 

Galicia:    In  Austrian  hands. 

United  States:  Practically  the  only  source  of 
crude  oil  and  gasoline  supply  for  our  allies  and 
our  own  forces. 

But  see  annexed  report  of  Hearing  before  Sen- 
ate Committee,  No.  1,  page  32.  The  Department 
of  the  Interior  gives  the  following  figures : 


Year 

Consumption 

Percentage 
Increase 

Production 

Drawn  from  Stock 

1914 

247,015,396 

1915 
1916 
1917 

276,399,918 
312,000,000 
353,000,000 

12 
13 
13 

281,000,000 
296,000,000 
286,990,000 

None 
18,500,000 
67,000,000 

Note  that  the  Interior  Department  calculates 
a  shortage  of  67,000,000  barrels  of  petroleum  in 
the  United  States  for  purely  peace  purposes  for 
1917.  Elsewhere  in  the  Eeport  of  the  Hearing, 
note  statement  by  the  Bureau  of  Mines  that  it  cal- 
culates an  additional  shortage  of  20,000,000  for 
war  purposes.  Since  this  estimate  it  has  been 
determined  to  build  and  operate  from  35,000  to 


92  MEXICO'S  DILEMMA 

100,000  aeroplanes.  This  will  take  an  additional 
amount  of  from  3,000,000  to  9,000,000  barrels  of 
high-grade  gasoline,  which  production  will  make 
an  additional  shortage  figured  at  from  40,000,000 
to  63,000,000  barrels  of  crude.  The  total  shortage, 
therefore,  is  arowid  137,000,000  barrels  for  all 
peace  and  war  purposes  in  the  United  States, 
which,  outside  of  Mexico,  is  the  only  practical 
available  supply. 

Mexico :  Mexico  to-day  can  produce  from  wells 
already  drilled  in,  how  largely  capped  or  cut  down, 
1,059,000  barrels  per  day,  and  the  field  is  only 
wild-catted.  The  actual  production  (crude  oil 
sold  or  put  in  storage)  is  at  present  only  about 
50,000,000  per  annum,  or  137,000  barrels  per  day, 
most  of  which  goes  to  the  United  States. 

Shipments  to  the  United  States  from  Mexico 
are  limited  by :  a.  Lack  of  tankers.  The  largest 
producing  company  (Mexican  Petroleum  Com- 
pany) has  turned  seven  of  its  tank  steamers  into 
the  British  trade.  The  ships  are  chartered  to  the 
British  Government.  More  tankers,  however,  are 
being  completed. 

b.  Lack  of  transportation  to  tide  water.  The 
total  potential  carriage  from  well  to  tanker  is 
now: 

To  Tampico — By  river  barges 25,000  bbl.  per  day 

By  Huasteca  pipe  lines..     75,000    "       u 

By  Aguila  pipe  lines 25,000 

125,000 

To  Tuxpam —  By  Penn-Mex  pipe  line .  .     25,000 
By  Aguila  pipe  lines. . . .     50,000 

Total  present  capacity  pipe  and  barge . .  200,000 


(t  U 

u        u 


GERMANY'S  ALLY  AT  TAMPICO          93 

or  73,000,000  barrels  per  annum.  In  addition, 
there  are  at  least  9,000,000  barrels  in  storage  at 
Tampico  and  Tuxpam,  ready  for  tanker  transport 
to  the  United  States  and  her  Allies. 

The  Mexican  Petroleum  Company  and  prob- 
ably the  Aguila  stand  ready  to  increase  pipe  line 
facilities  up  to  an  additional  50,000,000  barrels 
per  annum  if  they  are  only  guaranteed  protection 
of  their  governments  in  the  construction  and  in 
their  investment.  See  testimony  of  Edward  L. 
Doheny  in  annexed  Eeport  of  Hearing,  No.  3, 
page  123. 

The  production  of  the  United  States  can  be  in- 
creased, if  at  all,  only  slightly.  The  Mexican  pro- 
duction is  there  already.  It  is  in  the  hands  of 
American  and  British  companies  which  have  taken 
the  risk  and  made  the  great  investment  to  get  it. 
If  their  rights  are  respected  or  made  respected  by 
their  governments  there  will  be  no  shortage  of 
petroleum  supplies  for  the  United  States  and  the 
Allies  in  the  war.  There  will  actually  be  a  pleth- 
ora. 


But  we  have  to  count  with  the  real  hostility  of 
the  de  facto  government  of  Mexico,  which  is  no- 
toriously playing  with  the  Germans.  In  January, 
1917,  a  packed  constituent  assembly,  at  Queretaro 
(membership  in  which  was  limited  to  "  those  who 
had  served  Carranza,"  or  less  than  1  per  cent,  of 
the  whole  population)  adopted  a  "constitution" 


94*  MEXICO'S  DILEMMA 

which  contains  the  following  provisions  pertinent 
to  this  subject: 

Article  27.  In  the  Nation  is  vested  ownership 
of petroleum  and  all  hydrocarbons. 

....  The  ownership  of  the  Nation  is  inalien- 
able and concessions  shall  be  granted  by 

the  Federal  Government  to  private  parties  or 

corporations  organised  under  the  laws  of 

Mexico. 

Article  28.  There  shall  be  no exemp- 
tion from  taxation 

Article  123  (Of  Labor  and  Social  Welfare) 
XVIII Strikes  shall  be  considered  unlaw- 
ful only  when  the  majority  of  the  strikers  shall 
resort  to  acts  of  violence  against  persons  or  prop- 
erty. 

Article  27  deliberately  confiscates  the  oil  prop- 
erties acquired  by  British  and  American  com- 
panies. Oil  in  Mexico  has  always  been  the  prop- 
erty of  the  owner  of  the  fee.  The  companies  men- 
tioned have  spent  large  amounts  of  money  to  ac- 
quire oil  rights  by  purchase  and  lease.  The  effect 
of  this  "constitutional"  provision,  if  it  is  recog- 
nised as  legal,  is  to  make  Mexican  petroleum  the 
inalienable  property  of  the  Nation.  As  such,  be- 
ing contraband,  neutral  Mexico  cannot  allow  its 
shipment  to  belligerent  nations. 

Legislation  is  now  before  the  Mexican  Congress 
putting  this  ' ' constitutional' '  provision  into  effect. 

Article  28.     The  principal  oil-producing  com- 


GERMANY'S  ALLY  AT  TAMPICO          95 

panies  entered  the  field  of  oil  exploration  under 
inducement  contracts  providing  that  no  special  or 
export  taxes  should  be  levied  against  their  prod- 
ucts. The  Mining  Law  of  1887,  never  repealed, 
provides  that  petroleum  shall  not  be  specially 
taxed.  This  article  of  the  constitution  of  1917 
puts  an  end  to  this  protection,  violating  contracts. 
An  excessive  export  tax  on  petroleum  and  gaso- 
line, amounting  to  from  20  per  cent  to  50  per 
cent  of  the  value  of  the  oil  at  the  wells,  has  been 
"decreed,"  and  is  in  effect  and  payable  in  July, 
1917. 

If  the  principle  is  accepted,  Mexico  is  in  a  posi- 
tion to  embargo  shipments  of  oil  to  the  Allies  by 
increase  of  the  export  tax.  No  friendship  toward 
the  Allied  cause  has  been  manifested  by  the  de 
facto  government  of  such  nature  as  to  lead  one  to 
suspect  that  Mexico  will  fail  to  so  embargo  ex- 
ports. 

Art.  123.  By  this  article,  49  per  cent  of  a  body 
of  strikers  may  legally  destroy  properties  and 
lives.  Only  when  51  per  cent  are  so  engaged  is 
the  strike  illegal  enough  to  justify  the  interven- 
tion of  the  authorities.  This  seems  childish;  but 
this  very  "constitutional"  precept  was  invoked 
by  the  Presidente  Municipal  and  the  Jefe  de  Ar- 
mas of  Tampico  during  the  strike  in  the  British 
and  American  oil  termini  in  May,  1917,  to  justify 
their  refusal  to  interfere  with  the  '  *  strikers ' '  who 
were  carrying  torches  around  the  storage  tanks. 
Destruction  was  prevented  only  by  the  interven- 


96  MEXICO'S  DILEMMA 

tion  of  the  American  gunboats  in  the  Panuco 
Eiver.  The  strikers  were  openly  and  notoriously 
paid  during  this  tie-up  out  of  the  office  of  the 
German  Consul,  Eversbusch. 

The  Imperial  German  Empire  has  a  Minister 
in  Mexico,  Consuls  in  all  important  centres,  and 
intelligent  Germans  scattered  throughout  the 
country.  They  are  hand-picked  Germans.  They 
are  most  friendly  with  the  Mexican  authorities. 
The  Mexican  army  has  many  officers  of  German 
birth  and  training.  Fortunately  for  the  Allies, 
the  oil  fields  are  in  the  hands  of  a  counter-revolu- 
tionist, with  a  personal  interest  in  the  safety  of 
the  fields.  Should  he  (Manuel  Pelaez)  be  driven 
out  by  the  German-officered  Carranzistas,  the  wells 
now  producing  would  be  in  danger ;  but  such  dam- 
age as  they  could  do  would  be  repaired  within  two 
weeks  after  the  arrival  of  American  troops  in  the 
fields. 

By  the  "constitutional"  articles  quoted  above, 
the  Germans  have  three  excellent  means  of  block- 
ing the  oil  supply  of  the  Allies : 

(1)  By  protesting  against  the   shipment  to 
belligerents  of  a  contraband  material  declared  to 
be  the  property  of  the  Mexican  Government. 

(2)  By  encouraging  the  de  facto  government 
to  increase  export  taxes  to  the  prohibitive  point. 

(3)  By  fomenting  strikes  in  terminals  and  in 
the  fields  and  attendant  legalised  destruction  of 
oil  in  storage. 


GERMANY'S  ALLY  AT  TAMPICO          97 

Assurance  of  the  oil  supply  is  simple :  Eefuse 
to  recognise  the  de  facto  Mexican  Government  as 
a  de  jure  government  and  make  it  plain  that  none 
of  the  confiscatory  and  retroactive  provisions  of 
the  "constitution"  shall  be  enforced. 

If  the  "constitution"  is  enforced,  German 
agents  have  at  least  three  distinct  means  of  end- 
ing the  Mexican  supply  of  crude  oil,  vitally  needed 
in  the  war.  If  British  and  Americans  in  Mexico 
are  simply  protected  in  their  legally  acquired 
rights  and  properties,  by  austere  demands  and 
acts  of  the  American  and  British  Governments, 
There  Will  Be  No  Petroleum  Shortage. 

Problem:  To  make  the  American  and  British 
Governments  see  it. 


CHAPTER  V 

THE  LAST   SPY  OFFENSIVE 

ON  one  of  the  main  streets  of  Tampico 
stands  a  solid  one-story  cement  building 
which,  according  to  a  large  sign  ribboned 
across  the  top  like  a  banner,  is  the  Agencia  Comer- 
cial  y  Maritima.  The  members  of  the  firm,  judg- 
ing from  an  announcement  in  equally  prominent 
letters,  are  Heynen,  Eversbusch  y  Cia.  A  smaller 
placard  near  one  of  the  entrances  states  that  this 
is  the  Consulate  of  the  Imperial  German  Govern- 
ment; and  under  the  glass  cover  of  the  bulletin 
board,  also  on  the  outside  of  the  building,  are 
notices  to  German  citizens  regarding  service  in 
the  Imperial  Army. 

I  shall  not  describe  the  structure  further,  ex- 
cept to  remark  that  it  stands  on  the  sunny  side  of 
the  street  and  that  it  is  the  chief  German  banking 
institution  in  this  section  of  Mexico.  The  descrip- 
tion is  not  important,  except  to  fix  in  the  reader's 
mind  the  cementlike  reality  of  the  narrative  the 
events  of  the  war  have  woven  about  the  place,  for 
this  imposing  edifice  is  one  of  the  chief  way  sta- 
tions on  the  spider's  web  of  the  German  Secret 
Service  in  the  republic  south  of  the  Eio  Grande. 

98 


THE  LAST  SPY  OFFENSIVE  99 

Before  the  United  States  Congress  declared  war 
against  the  Berlin  Imperialists,  Senor  and  Herr 
Carl  Heynen  was  one  of  the  active  German  agents 
in  the  United  States  and  Mexico.  So  important 
was  he  considered  by  the  United  States  Govern- 
ment, whose  detectives  found  him  in  the  United 
States  when  war  was  declared,  that  he  was  placed 
in  an  internment  camp,  where  he  lives  to-day  in 
peace  and  quiet.  Herr  Eversbusch,  the  other 
member  of  the  concern,  being  the  German  Consul 
at  Tampico,  always  remained  in  that  city,  to  direct 
the  financial  transactions  of  the  institution  and 
protect  Germany's  interests. 

Before  America  was  a  belligerent  the  Agencia 
Comercial  y  Maritima  communicated  in  code  with 
banks  and  individuals  in  the  United  States.  When 
a  censorship  was  established  these  messages  were 
stopped ;  but  the  pause  was  only  temporary.  The 
State  Department  announced  one  day  that  those 
concerns  having  business  of  a  confidential  nature 
in  the  United  States  and  Mexico  might,  by  filing 
a  copy  of  the  code  with  the  United  States  censors, 
continued  to  communicate  as  in  the  pre-war  days. 

At  the  time  this  pronouncement  was  made  the 
American  Consul,  Mr.  Claude  I.  Dawson,  was  in 
Washington,  and  a  young  vice  consul  was  acting 
in  his  stead.  One  day  a  representative  of  Herr 
Eversbusch  appeared  at  the  Consulate  with  a  code 
of  this  bank  and  the  statement  that,  inasmuch  as 
the  bank  did  business  with  American  concerns  in 
Houston,  Texas,  and  in  New  York  City,  it  was 


100  MEXICO'S  DILEMMA 

entitled  to  the  use  of  its  code.  The  secret  docu- 
ment was  filed  with  the  American  authorities  and 
for  an  indefinite  period — the  authorities  are  not 
quite  certain  how  long — this  German  bank  and  the 
German  Consul  in  Tampico  sent  and  received 
secret  messages  to  and  from  the  United  States. 
The  practice  was  not  interrupted  until  Consul 
Dawson  returned  to  his  post. 

Of  course  it  required  considerable  faith  on  the 
part  of  Herr  Eversbusch  in  the  inability  of  the 
United  States  to  discover  such  an  obvious  scheme 
at  deception;  but  in  this  faith  in  Uncle  Sam's 
advertised  laxity  the  German  official  was  dis- 
appointed. He  was  found  out  and  this  line  of 
communication  was  cut,  as  have  been  most  of  the 
lines  between  German  agents  throughout  the 
world  and  the  Berlin  Government. 

I  cite  this  instance  to  show  that,  though  Ger- 
many has  planted  and  selected  her  secret-service 
operators  in  every  country  on  the  globe,  the  Allied 
and  American  Secret  Service  offensive  against  the 
lines  of  communication  between  enemy  spies  and 
their  Berlin  headquarters  has  been  so  successful 
that  one  may,  for  the  first  time  during  the  war, 
speak  of  the  checkmating  of  the  enemy's  intelli- 
gence service.  Battles  in  the  air  have  been  more 
spectacular,  those  on  land  more  intense,  and  those 
on  the  seas  more  baffling  than  the  secret  battles 
between  the  belligerent  intelligence  departments ; 
but  few  have  been  more  important.  What,  for 
instance,  could  be  more  important,  so  far  as  the 


LA     CUCARACHA 


PRASES  POPULARES 


ANOTHER  VIEW  OF  GERMANY'S  LEADERS 


THE  LAST  SPY  OFFENSIVE  101 

United  States  is  concerned,  than  the  checking  of 
the  last  German  spy  offensive  in  Mexico,  which 
had  for  its  object  a  military  clash  between  that 
republic  and  the  United  States? 

The  last  spy  offensive  marked  the  climax  to 
German  operations  on  the  American  continent, 
jnst  as  the  discovery  of  German-paid  intrigue  to 
force  peace  in  Europe  has  shattered  the  Imperial 
plans  for  an  Imperial  peace. 

Undoubtedly  Germany  still  has  her  trusted 
agents  and  their  bribed  assistants  in  Washington, 
London,  Paris,  Borne,  Petrograd  and  other  cities ; 
but  most  of  them  are  like  a  swarm  of  wingless 
bees  miles  away  from  the  hive.  The  Allies  and 
the  United  States  have  had  to  fortify  themselves 
against  spying  as  against  military  attack,  and 
their  defences  to-day  are  almost  flawless.  They 
have  succeeded  in  discovering  if  not  in  destroying 
the  channels  through  which  information  was  sent 
to  and  from  Berlin.  Sometimes,  seemingly  by 
mere  chance,  a  link  has  been  broken,  as  in  the  case 
of  the  wireless  operator  on  an  interned  Teutonic 
liner  who  escaped  to  Mexico  before  Congress  de- 
clared war.  When  I  was  in  Mexico  City,  and  even 
before  I  left  the  United  States,  I  heard  reports 
about  secret  German  wireless  stations ;  but  I  was 
unable  to  establish  the  location  of  any  German 
tower  that  was  not  deaf  and  dumb,  and  that  had 
any  other  sign  language  as  a  substitute. 

After  diplomatic  relations  between  Washington 
and  Berlin  were  severed  the  chief  wireless  officer 


1G£  MEXICO'S  DILEMMA 

on  one  of  the  Hamburg  liners  formerly  tied  to  a 
Hoboken  wharf  dismantled  and  took  apart  the 
plant  on  his  ship,  packed  the  essential  parts  in 
trunks  and  suitcases,  and  boarded  a  train  for  Mex- 
ico. Before  April  fourth  he  was  safely  across  the 
international  border,  bag,  baggage  and  all. 

This  wireless  operator  had  been  ordered  to  Mex- 
ico to  construct  one  of  the  links  in  the  proposed 
chain  of  communication  between  this  hemisphere 
and  the  Kaiser's  agents  in  Spain  and  Germany. 
But  he  was  only  one  of  many  suspected  Germans 
who  escaped  from  New  York  before  this  country 
was  formally  at  war  with  the  autocratic  enemy. 
There  were  many  others,  who  were  to  spread  the 
nets  of  German  intrigue  in  Cuba,  Mexico  and  Cen- 
tral America,  and  who  left  at  the  same  time.  By 
June  these  men  were  scattered  in  all  the  leading 
cities  of  the  South,  there  to  begin  their  operations 
upon  orders  from  abroad. 

It  is  perhaps  not  necessary  to  state  that  before 
this  wireless  operator  packed  his  instrument  he 
invoiced  and  carefully  examined  it  to  make  sure 
he  had  all  the  parts  needed.  Those  that  were  miss- 
ing he  bought  through  an  agent;  so  when  he  left 
Hoboken  he  was  certain  that  every  part  needed  to 
make  the  wireless  plant  a  success,  with  the  excep- 
tion of  the  tower  and  the  electric  power,  was  se- 
curely registered  in  his  baggage. 

When  he  arrived  in  Mexico  City  he  reported  to 
his  All  Highest  officials,  and  within  a  short  time 
was  ordered  to  rebuild  the  plant  he  had  taken 


THE  LAST  SPY  OFFENSIVE  103 

from  the  interned  liner.  With  true  Teutonic  plod- 
ding thoroughness  he  assembled  the  parts,  only  to 
discover  that  one  of  the  pieces  he  was  certain  he 
had  packed,  because  it  would  be  impossible  to  get 
a  substitute  in  Mexico,  was  missing.  He  searched 
his  baggage,  re-examined  the  parts,  consulted  his 
lists,  and  to  his  astonishment  and  amazement 
learned  that  one  of  the  most  important  features 
of  his  instrument  was  missing.  A  closer  inspec- 
tion of  his  baggage  showed  that  it  had  been 
opened. 

Some  one — perhaps  it  is  not  necessary  to  say 
who,  but  some  one  who  evidently  knew  his  scheme 
— had  entered  his  baggage  and  removed  such  an 
essential  part  of  the  machine  that  it  could  not  be 
used  in  Mexico  unless  the  part  was  imported  from 
the  United  States.  And  by  this  time  the  United 
States  was  at  war  with  Germany.  This  man  tried 
through  many  agents  to  get  this  part  from  the 
North ;  but  at  the  time  I  left  Mexico  City,  in  Sep- 
tember, 1917,  he  was  still  seeking  the  missing  link. 

Some  one  was  just  a  little  bit  more  clever  than 
he ;  and  that  some  one  must  have  been  an  enemy. 

Perhaps  it  was  some  one  in  the  United  States 
Department  of  Justice,  perhaps  some  one  in  the 
British ;  or  it  might  have  been  some  one  in  the  New 
York  detective  service.  It  really  does  not  matter 
who  did  the  work;  but  it  has  meant  a  great  deal 
to  the  United  States  to  have  it  impossible  for  this 
German  subject  to  erect  his  wireless  station  in 
Mexico. 


104  MEXICO'S  DILEMMA 

German  efforts  in  Mexico  were  divided  into 
three  classes :  the  press  propaganda ;  the  business 
intrigue ;  and  the  political  endeavours.  The  press 
work  was  placed  in  the  hands  of  Herr  von  Lubeck, 
a  wealthy  German  merchant,  who  collected  three 
hundred  thousand  dollars  from  Germans  in  Mex- 
ico City  as  an  initial  campaign  fund. 

About  the  middle  of  1916  it  was  discovered  that 
these  various  organisations  were  not  only  making 
detailed  reports  to  Berlin,  but  that  they  were  re- 
ceiving instructions  from  headquarters  there. 
This  correspondence,  which  was  written  as  con- 
fidential, was  intercepted;  and  one  document, 
which  I  obtained,  discloses  in  a  general  way  the 
activities  of  the  German  agents. 

In  order  to  make  possible  an  efficient  secret 
service  it  was  necessary  for  Germany  to  spread  a 
net  over  Mexico,  as  she  did  over  the  United  States ; 
but  in  casting  this  net  in  the  well-known  German 
secret  manner,  it  struck  snags,  and  the  holes  torn 
were  so  great  that  the  German  service  in  Mexico 
has  lost  its  effectiveness.  All  the  German  agents 
in  Mexico  are  known  to  the  Allies.  Every  move- 
ment is  traced,  though  sometimes  it  is  exceedingly 
difficult  to  do  so ;  and,  though  there  are  Germans 
travelling  throughout  Mexico  all  the  time,  their 
plans  are  nipped  before  they  are  well  under  way. 
Mexico,  which  was  to  be  the  Spy's  Paradise,  has 
become  the  German  Spy's  Hades. 

Travelling  on  Mexican  trains,  I  met  a  large  num- 
ber of  Germans.  On  some  railroad  lines  there  were 


THE  LAST  SPY  OFFENSIVE  105 

more  Germans  than  Americans.  When  I  boarded 
the  train  at  Monterey  for  Tampico  there  were  four 
Germans  aboard  and  two  Americans.  The  re- 
mainder were  Mexicans.  Travellers  in  the  in- 
terior declared  that  German  agents  were  travel- 
ling in  various  parts  of  the  country — on  business ; 
but  through  the  loyal  co-operation  of  American 
business  men  and  British  commercial  agents  these 
men  are  so  effectively  tracked  that,  even  before 
they  can  do  anything  to  cause  trouble,  their  plans 
are  exposed  or  placed  before  the  Mexican  Govern- 
ment. 

At  one  time  Germany  tried  to  place  German 
officers  in  the  Mexican  Army.  At  one  time  there 
were  forty  active  German  officers  in  that  army. 
While  I  was  in  Mexico  they  were  discharged.  The 
Mexicans  discovered  that  they  could  not  be  trusted 
in  their  posts,  because,  though  they  were  employed 
to  drill  the  Mexican  Army,  it  was  learned  that 
their  ulterior  motives  and  their  constant  propa- 
ganda against  the  United  States  were  inimical  to 
the  best  interests  of  the  Mexican  Government  and 
people. 

There  is  a  great  difference  between  American 
and  German  activities  in  Mexico.  Time  was  when 
the  Mexicans  feared  the  Americans;  when  the 
Mexican  Government  suspected  American  motives 
and  American  plans  in  Mexico.  And  though  that 
time  is  not  past,  most  Mexicans  are  beginning  to 
realise  that,  with  the  exception  of  a  few  big  finan- 
cial and  business  interests  in  the  United  States, 


106  MEXICO'S  DILEMMA 

no  one,  from  the  Government  to  the  majority  of 
the  American  people,  desires  or  would  sanction 
American  military  intervention  in  that  country. 
But  the  German  plans  are,  almost  without  excep- 
tion, made  with  military  ends  in  view. 

Early  in  1915  there  was  organised  in  Mexico 
City  a  Union  of  German  Citizens.  On  April  six- 
teenth, 1916,  the  following  report  was  sent  from 
this  Union  to  the  Deutscher  Wirtschaftsverband 
for  Central  and  South  America,  with  home  offices 
at  Potsdamerstrasse,  28,  Berlin.  The  significant 
statement  was  made  at  that  time,  less  than  one 
year  before  the  United  States  broke  off  relations 
with  Berlin :  *  *  It  is  not  practicable  for  us  to  aid 
Germany  by  force  of  arms."  A  bold  confession, 
indeed,  that  they  had  been  thinking  of  military 
co-operation;  but  because  of  the  small  number  oi 
Germans  in  Mexico  it  was  not  practicable  to  do 
anything  which  might  aid  Germany  against  the 
United  States ! 

' '  This  is  to  advise  of  the  organisation  of  this 
society  as  far  back  as  June  sixteenth  last  year" — 
19J5 — the  report  began.  "As  your  association 
is  occupied  in  Latin- American  countries,  our  so- 
ciety will  pursue  the  same  course  here.  It  is  not 
practicable  for  us  to  aid  Germany  by  force  of 
arms;  so  our  main  intention  will  be  to  aid  all 
possible  in  an  economic  manner. 

"The  society  was  founded  June  sixteenth,  hav- 
ing 164  members;  and  the  first  committee  was 
chosen  October  twelfth,  at  which  time  the  propa- 


THE  LAST  SPY  OFFENSIVE  107 

ganda  was  circulated  in  the  capital  and  through- 
out the  interior.  At  the  same  time  245  Germans 
of  the  Empire  joined  in  the  capital  and  113  from 
the  interior,  making  a  total  of  522. 

"As  you  can  readily  see  from  reading  our  stat- 
utes, we  will  accept  none  as  members  save  native- 
born  Germans,  and  their  nationality  must  be 
proved  beyond  doubt.  That  proscription  also  per- 
mitted the  Imperial  authorities  to  recognise  the 
nationality  of  sixty  Germans.  Moreover,  a  great 
number  of  Germans  who,  for  various  reasons,  'by 
not  observing  the  ancient  regulations,  lost  their 
nationality,'  have  regained  their  standing  as  Ger- 
mans, and  have  been  rehabilitated  under  the  new 
liberal  laws  of  the  association.  It  is  to  be  hoped 
that  excellent  results  will  emanate  from  this 
source. 

"Up  to  the  present  a  great  number  of  publica- 
tions on  the  war  have  been  circulated  in  the  cities 
and  throughout  the  country,  dealing  with  the  Ger- 
man viewpoint,  by  the  Ausschuss  fur  Verteilung 
von  Aufklarungs-Material,  who  have  been  work- 
ing for  three  months ;  and  a  great  number  of  Mex- 
icans have  been  convinced  that  we  are  in  the  right 
in  the  methods  of  conducting  the  war  and  in  our 
spirit  of  German  culture. 

"Also,  the  following  technical  works  and  serials 
have  been  distributed :  The  Great  War  in  Descrip- 
tion; The  Actual  "War;  The  Discourse  of  the  Chan- 
cellor, September  12,  1915 ;  and  The  War  and  the 
Right,  by  Dr.  Ed.  Llorens. 


108  MEXICO'S  DILEMMA 

"The  stories  contained  in  the  Herald,  of  Ham- 
burg, received  here  in  December,  met  with  great 
approval. 

* '  The  circulation  of  the  propaganda  will  be  as- 
sured by  means  of  twenty-nine  local  committees, 
and  other  members  throughout  the  country;  and 
we  are  hopeful  of  the  greatest  results. 

"Free  courses  in  German  have  been  instituted 
in  the  German  schools  by  Mexican  instructors 
without  special  effort  on  the  part  of  our  associa- 
tion, though  a  part  of  the  general  plan  of  the  com- 
mittee, and  have  been  received  with  great  ap- 
proval by  the  public,  and  add  to  our  propaganda. 
By  this  means  the  public  will  be  given  to  under- 
stand Germany  and  to  receive  the  true  communi- 
cations of  our  General  Staff  on  the  happenings  of 
the  war.  The  public  will  be  disposed  to  accept  our 
announcements. 

"It  is  desired  to  begin  the  immediate  construc- 
tion of  a  German  hospital,  which  will  be  a  great 
impulse  to  our  colony  and  will  demonstrate  to  our 
following  the  power  of  German  science,  German 
ability,  and  the  German  spirit  of  organisation.  If 
the  Empire  approves  and  gives  aid  it  will  be  a 
great  point  for  our  propaganda.  A  committee  of 
physicians  has  this  matter  under  study  from  the 
scientific  point  of  view. 

"The  colony  of  Germans  of  the  Empire  here  is 
relatively  small  and  the  economical  setbacks  of 
the  country  for  the  past  five  years  have  greatly 


THE  LAST  SPY  OFFENSIVE  109 

hindered  our  spirit  of  enterprise  against  the  eco- 
nomic strength  of  our  enemies. 

"  Address  correspondence  for  the  president  to 
Herr  Ad.  Christliebsen,  Apartado  58,  Mexico,  or 
to  the  secretary,  Hugo  von  den  Steinen,  Apartado 
1221,  Mexico  City." 

When  this  communication  was  discovered  en 
route  to  Berlin  another  avenue  of  German  intrigue 
was  opened  up ;  and,  in  view  of  the  disclosures  in 
the  letter  from  former  Minister  of  Foreign  Af- 
fairs Alfred  Zimmermann  to  the  German  Minister 
in  Mexico  City,  it  is  easy  to  see  what  use  the  Im- 
perial Government  could  have  made  of  the  twenty- 
nine  branches  of  the  Verband  Deutscher  Reich- 
sangehoriger  in  case  Germany's  efforts  had  suc- 
ceeded in  influencing  Mexico  to  invade  the  United 
States.  Also,  in  view  of  the  Zimmermann  letter, 
one  can  understand  the  statement  of  this  society 
in  April,  1916,  that  "it  is  not  practicable  for  us 
to  aid  Germany  by  force  of  arms."  The  society, 
at  that  time,  was  just  being  organised,  and  was, 
therefore,  not  powerful  enough  to  carry  on  mili- 
tary operations.  Evidently  Doctor  Zimmermann 
thought  the  German  citizens  in  Mexico  could  vio- 
late Mexican  neutrality  as  easily  as  the  German 
Army  scrapped  the  treaty  with  Belgium. 

One  can  draw  a  remarkable  contrast  between 
this  method  of  organising  foreigners  in  Mexico 
with  that  of  the  American  business  men  who,  dur- 
ing my  stay  in  the  capital,  planned  an  American 
Chamber  of  Commerce.  The  complete  prospectus, 


110  MEXICO'S  DILEMMA 

published  and  signed  by  the  leading  American 
business  men  and  bankers,  I  have  given  in  the 
appendix  of  this  book.  The  prospectus  declared : 

"It  is  proposed  to  establish  a  purely  commer- 
cial and  non-political  organisation,  which  will  fo- 
ment the  friendly  trade  relations  between  Mexico 
and  the  United  States." 

Among  the  benefits  to  be  derived  from  such  an 
organisation  were  cited  these : 

"Increase  of  the  market  in  Mexico  for  Ameri- 
can goods  of  all  kinds. 

"Increase  of  export  of  Mexican  products  to  the 
United  States  and  encouragement  of  production 
in  Mexico  by  enlisting  capital  and  creating  new 
markets  or  improving  present  ones  through  better 
methods. 

'  '  The  establishment  of  a  much-needed  bureau  of 
business  information  about  Mexico,  its  resources, 
opportunities  and  impediments,  for  the  benefit  of 
Americans  in  the  United  States  who  wish  such  in- 
formation but  at  present  cannot  get  it  from  re- 
liable sources." 

Instead  of  being  a  secret  report,  as  in  the  case 
of  the  German  Bericht  to  Berlin,  the  American 
report  was  published  and  widely  circulated.  No 
mention  is  made  of  military  operations,  interven- 
tion, and  so  on,  and  the  object  of  the  chamber  will 
be  as  beneficial  to  Mexico  as  to  the  United  States. 
That  is  the  Great  Divide  between  American  enter- 
prise in  Mexico  and  German  intrigue.  The  object 
of  the  one  is  to  develop  honest  business ;  the  Teu- 


THE  LAST  SPY  OFFENSIVE  111 

tonic  object  is  to  spread  propaganda  and  convince 
Mexicans  that  the  German  methods  of  conducting 
the  war  are  right. 

It  might  have  been  stated  at  the  beginning  of 
the  war,  because  of  the  cleverness  of  the  German 
spies  and  the  spotless  organisation,  that  everything 
they  did  was  in  the  dark — at  least,  so  far  as  the 
enemy  was  concerned.  Those  were  the  days  when 
inconspicuous  Belgian  billboards,  advertisements 
in  French  and  British  newspapers,  direct  tele- 
grams and  letters  from  Bussian  traitors,  and  offi- 
cial documents  from  Italy  were  messages  and  re- 
ports from  intelligence  officers.  To-day  one  might 
as  correctly  assert  that  the  sun  never  sets  on  Ger- 
man intrigue,  for  practically  every  great  scheme 
by  which  Germany  has  sought  to  embroil  neutrals, 
destroy  ships  of  friendly  states,  stir  up  discon- 
tent within  belligerent  nations,  and  make  peace, 
has  been  discovered  by  the  United  States  or  the 
Allies  before  these  plans,  plots  and  military 
dreams  came  true. 

One  day  I  was  sitting  in  the  lobby  of  my  hotel 
in  Tampico,  chatting  with  an  American  editor, 
when  two  young  men  entered,  greeting  my  com- 
panion. 

"Mr.  Blume  and  Mr.  Nieno,"  he  said,  introduc- 
ing them. 

We  sat  round  the  table  and  discussed  the  war, 
when  my  companion  remarked  that  I  had  been  in 
Germany  and  had  written  some  articles  about  that 


MEXICO'S  DILEMMA 

country ;  then,  turning  to  one  of  the  guests,  he  said 
to  me: 

"Herr  Blume,  here,  is  the  head  of  the  German 
Secret  Service. "  Then  he  smiled. 

"So,"  remarked  Blume  in  good  English,  "you 
have  been  writing  those  lies  about  Germany!  I 
have  read  The  Saturday  Evening  Post  for  many 
years ;  but  when  the  war  broke  out  I  stopped  read- 
ing everything  about  Germany.  None  of  your 
magazines  will  publish  the  truth.  The  other  night 
I  read  every  article  in  the  Post,  except  one  about 
Germany.  I  did  not  want  to  read  that  one;  but 
I  couldn't  sleep  because  it  was  so  hot  that  night, 
and  I  read  that  article  about  one-thirty  in  the 
morning.  It  made  me  so  angry  I  didn't  sleep  all 
night!" 

"Well,"  I  replied,  "you  ought  to  read  every- 
thing that  is  written  about  Germany,  and  maybe 
you  couldn't  sleep  for  a  week!  But  what  are  you 
going  to  do  when  Germany  becomes  a  democratic 
nation?" 

"Germany  is  democratic,"  he  answered;  and 
then  the  conversation  followed  other,  less  belliger- 
ent, channels. 

Though  it  would  not  be  safe  to  assume  that  be- 
cause Herr  Blume  is  considered  by  some  of  the 
foreigners  as  the  chief  of  the  Kaiser's  service 
there,  the  fact  that  the  allied  foreigners  can  select 
one  or  more  men  who  do  His  Majesty's  work  is 
significant  in  that  it  shows  how  even  the  ordinary 
citizen,  at  home  and  abroad,  is  a  member  of 


El  Embajador:  /Afi  estar  all-rigth! 


$0.25 


COVER-CARTOON   OF   AMBASSADOR   FLETCHER  FROM 
A   SMALL    MAGAZINE,  "MOMO,"    MEXICO  CITY 


THE  LAST  SPY  OFFENSIVE  113 

Democracy's  secret  service.  In  fact,  what  work 
is  being  done  in  Mexico  to-day  for  the  United 
States  and  the  Allies  is  not  the  work  of  paid  con- 
fidential investigators  so  much  as  the  voluntary 
aid  of  American  and  Allied  business  men  and 
travellers.  There  are  Allied  eyes  to-day  on  nearly 
every  German  operation ;  and  more  than  one  order 
to  Imperial  agents  in  Mexico  has  failed  of  execu- 
tion because  of  these  sleepless  eyes. 

It  is  not  difficult  to  learn  about  the  German 
moves  in  that  country.  The  United  States  Gov- 
ernment knows  every  possible  means  of  communi- 
cation between  Mexico  and  the  outside  world.  It 
knows  of  the  possibilities  through  Salvador, 
Spain,  Argentina  and  Japan.  It  knows  the  mes- 
sengers and  agents  who  travel  between  Cuba, 
South  and  Central  America,  and  Mexico;  and 
most  of  the  time  the  United  States  or  one  of  the 
Allies  knows  what  is  being  sent.  The  system  of 
watching  the  German  agents  in  this  Latin  Be- 
public  is  so  water-tight  that  most  of  the  danger  is 
past. 

One  can  meet  many  Americans  who  believe  that 
our  system  in  Mexico  is  weak  because  it  is  so  easy 
for  people  to  travel  back  and  forth  without  pass- 
ports. I  heard  directly  of  several  instances  where 
Americans  went  to  different  parts  of  that  coun- 
try without  official  permission ;  and  I  returned  to 
the  United  States  without  having  to  give  up  my 
passport,  which  is  required  now  by  State  Depart- 
ment regulations.  Some  opium  smuggling  still 


114  MEXICO'S  DILEMMA 

goes  on,  some  information  still  goes  back  and 
forth,  and  some  Germans  succeed,  through  Mex- 
ican and  other  neutral  agents,  in  purchasing  war 
materials  in  the  United  States ;  but  the  big  moves 
are  almost  always  nipped  in  the  bud. 

Not  even  the  Austrian  Consul  in  Monterey,  the 
chief  industrial  and  railroad  centre  in  Northern 
Mexico,  is  able  to  get  his  carloads  of  sulphuric 
acid  out  of  the  United  States,  even  though  he  has 
the  largest  wholesale  and  retail  drug  store  in  that 
part  of  the  country.  Whether  his  object  is  to 
divert  this  acid  from  war  purposes,  or  whether  it 
is  for  use  in  Mexico,  it  matters  not.  He  was  balked 
even  when  he  organised,  through  Mexican  work- 
ers, a  wax-match  factory,  and  ordered  still  more 
sulphuric  acid.  His  business  and  that  of  his  satel- 
lites may  be  the  business  of  the  Imperial  German 
Government ;  and  Uncle  Sam  is  not  taking  chances. 

The  last  spy  offensive  was  another  German 
failure,  as  both  Mexico  and  the  Germans  are  be- 
ginning to  realise.  Mexico  and  the  United  States 
in  the  mid-summer  of  1917  were  on  friendlier 
relations  than  at  any  time  during  the  war. 

Since  I  wrote  the  first  of  the  series  of  articles 
which  has  led  to  the  composition  of  this  book  there 
have  been  certain  events  of  more  than  ordinary 
significance  that  change,  in  some  respects,  the 
statements  I  made  in  those  articles.  Between  the 
time  of  the  writing  and  the  publication  of  the  ar- 
ticle entitled  "Kising  or  Setting  Sun  in  Mexico," 
President  Wilson  recognised  the  de  jure  Govern- 


THE  LAST  SPY  OFFENSIVE  115 

ment.  President  Carranza  addressed  an  auto- 
graph letter  to  President  Wilson,  notifying  him 
officially  of  his  selection  as  President  of  Mexico 
at  the  last  election;  and  on  August  thirty-first, 
1917,  Mr.  Wilson,  without  consulting  his  Cabinet, 
extended  our  official  recognition  to  the  present 
Mexican  Government. 

In  Tampico  the  labour  difficulties  have  in- 
creased ;  and  General  Carranza  has  sent  two  hun- 
dred soldiers  to  the  city  to  maintain  order,  while 
a  number  of  Mexicans  have  written  to  the  United 
States  Consulate  asking  that  American  marines 
be  landed  to  protect  the  city  at  night.  In  these 
letters  the  Mexicans  declared  that  it  was  unsafe 
to  go  on  the  street  after  dark  in  some  neighbour- 
hoods, and  they  requested  American  intervention. 

Food  and  money  continue  to  become  scarcer 
throughout  Mexico,  despite  the  official  announce- 
ments. In  October,  1917,  the  Federal  Gov- 
ernment notified  the  governor  of  the  state  of 
Nuevo  Leon  that  hereafter  the  Central  Federal 
Treasury  would  be  unable  to  give  to  the  state  that 
portion  of  the  federal  taxes  which  had  previously 
been  sent  there.  The  governor  was  notified  that 
he  would  have  to  raise  money  for  the  state  govern- 
ment as  best  he  could. 

In  the  warehouses  of  Monterey  there  were  in 
August,  1917,  over  forty  thousand  hides  ready  for 
exportation;  but  they  could  not  be  shipped  be- 
cause the  Mexican  Government  demanded  that  the 
duty  be  paid  in  gold,  and  it  was  impossible  for 


116  MEXICO'S  DILEMMA 

the  exporter  to  get  the  required  amount.  He 
notified  American  officials  that  he  had  sixty  thou- 
sand hides  in  other  warehouses,  available  to  the 
Allies  whenever  the  required  amount  of  gold  was 
permitted  to  leave  the  United  States. 

Business  in  the  Monterey  consular  district  has 
continued  to  increase,  even  beyond  the  figures 
quoted  in  the  first  article  I  wrote  on  Mexico: 
"Mexico— Enemy  or  Ally?"  In  July,  1917,  the 
exportations  amounted  to  $1,950,000;  in  August, 
$2,500,000;  and  during  the  first  fifteen  days  of 
September,  $1,500,000.  This  indicates  a  further 
revival  in  business  in  this  part  of  Mexico. 

As  to  whether  Mexico  shall  be  an  enemy  or  an 
ally  of  the  United  States,  the  question  is  still  un- 
decided; but  it  seems  at  this  time  that  the  bonds 
between  the  two  nations  are  being  fused  tighter 
at  every  rise  of  the  sun. 

But  Mexico  is  and  may  remain  for  some  time 
as  she  was  described  to  me  by  a  foreigner  in 
Tampico. 

"Mexico,"  he  declared,  "is  the  screen  of  a  great 
national  moving  picture.  The  operator  and  his 
machine  are  in  the  skies.  Four  reels  of  the  revo- 
lution have  been  unwound.  Nobody  knows  the 
fifth,  except  the  Great  Author  of  Human  Des- 
tinies ;  and  the  last  act  is  just  about  to  begin." 


CHAPTER  VI 

RISING  OB  SETTING  SUN  IN  MEXICO 

THE  sun  rises  unclouded  in  Mexico  City  one 
day,  but  by  that  afternoon  the  clouds  domi- 
nate the  battlefields  of  the  skies.  It  rains 
for  a  few  hours,  the  dusty  streets  are  washed,  auto- 
mobiles and  coaches  skid  and  race  through  the  city, 
and  the  people  go  home  or  to  the  theatres.  The 
next  day  they  expect  the  morning  sun  to  be  as 
bright  and  warm  as  it  was  the  day  before.  Be- 
cause, it  may  be,  it  is  the  rainy  season  now,  they 
await  the  afternoon  shower  and  are  prepared  for 
it  when  it  comes. 

In  somewhat  the  same  philosophic  way  they  look 
at  politics.  They  expect  to-morrow  to  be  as  peace- 
ful as  to-day;  but  during  the  past  seven  years 
there  have  been  so  many  unexpected  revolutionary 
storms  that  when  a  change  comes  they  act  as  they 
do  when  it  rains  in  the  morning,  or  when  the  sun 
shines  all  day. 

To-day,  however,  there  are  a  few  people  who 
would  like  to  know  whether  Mexico  is  facing  the 
rising  sun  of  a  new,  prosperous  era,  or  whether 
the  sun  is  about  to  give  way  to  the  clouds  of 

117 


118  MEXICO'S  DILEMMA 

another  troublesome  period.  Quien  sdbe?  say  the 
Mexicans.  It  is  true,  one  never  can  tell. 

A  poor-rich  nation  is  Mexico.  Eich,  because 
foreign  intellect,  foreign  capital,  foreign  engineers 
and  foreign  business  men  developed  her  resources 
and  made  her  so.  Poor,  because  the  revolutions 
have  pestered  the  foreigners  and  Mexico  in  some- 
what the  same  way  that  an  army  of  Hessian  flies 
destroys  a  wheat  field.  But  to-day  the  revolution- 
ists have  discovered  that  the  battle  cry,  Down  with 
the  foreigners  who  exploited  us! — though  it  may 
win  a  revolution — does  not  help  reconstruction. 
The  old  sign  which  was  illuminated  throughout 
the  world  under  President  Diaz — Welcome,  for- 
eigners ! — is  being  put  up  again  by  timid  hands ; 
and  it  will  not  be  long  before  it  is  lighted  so 
brightly  that  it  can  be  read  in  the  darkest  corners 
of  the  sceptical  business  world.  This  poor  little 
rich  nation  wants  to  be  as  rich  in  gold  as  in  natural 
wealth,  and  the  government  is  beginning  to  realise 
that  only  the  hated  foreigners  have  the  gold. 

There  is  so  much  of  the  melodramatic  in  Mex- 
ican life  to-day  that  one  is  apt  to  overlook  what  is 
going  on  behind  the  scenes.  One  hears  about  the 
autocratic  rule  of  various  states;  one  learns  how 
governors  and  generals  hold  up  foreign  business 
interests,  and  about  the  inability  of  the  central 
government  to  enforce  its  orders ;  one  reads  in  the 
newspapers  about  the  street  fights  and  military 
duels ;  and  one  imagines  that  the  whole  community 


RISING  OR  SETTING  SUN  IN  MEXICO   119 

has  nothing  more  to  do.  This  is  where  one's  imag- 
ination is  not  a  safe  prophet. 

To-day  the  United  States  and  the  Allies  are 
watching  Mexico  through  a  microscope.  They 
delayed  official  recognition  of  Don  Vemistiano  Car- 
ranza  as  president  of  the  Republic.  They  were 
waiting  to  see  whether  the  sun  is  rising  or  setting. 
They  recognised  the  de  facto  government  and  in 
August,  1917,  President  Wilson  recognised  the 
official  status  of  the  Carranza  Government. 

The  new  constitution  of  Mexico,  adopted  at 
Queretaro  in  January,  1917,  contains  two  articles 
that  foreign  governments  consider  confusing 
and  equivocal.  There  is  a  possibility  that  Ar- 
ticle Twenty-seven  may  be  enforced  to  the  ex- 
tent that  every  foreign  property  in  Mexico  shall 
be  confiscated  by  the  government.  Many  millions 
of  dollars  invested  by  foreigners  are  in  the  hands 
of  the  government.  Since  January  first,  1917,  to 
the  time  of  this  writing,  for  instance,  the  Mexican 
Government  had  taken,  through  so-called  forced 
loans,  thirty-seven  million  pesos  in  gold  from  the 
banks  of  Mexico  City,  Monterey,  Vera  Cruz  and 
other  cities. 

In  some  cases  the  government  has  given  re- 
ceipts. In  others  the  French,  English,  Canadian 
and  American  bankers  and  depositors  have  no 
records.  The  government  has  been  compelled  to 
take  this  step  because  of  the  financial  crisis  that 
faces  the  nation.  There  is  no  paper  money  in  cir- 
culation. Gold  and  silver  coins  are  the  only  me- 


120  MEXICO'S  DILEMMA 

dium ;  and  the  expenses  of  the  government  and  the 
requirements  of  business  are  so  enormous  that 
money  must  be  had,  no  matter  what  measures  are 
necessary. 

There  are  some  Mexicans  who  declare  that  the 
banks  will  be  reimbursed ;  but  the  time  when  this 
will  be  possible  depends  upon  how  soon  the  gov- 
ernment obtains  foreign  financial  aid. 

Mexico  has  endeavoured  to  obtain,  through 
agents,  a  loan  from  New  York  bankers  or  from 
the  United  States  Government.  Early  in  August, 
1917,  a  report  reached  Mexico  City  that  the  United 
States  would  veto  a  loan  if  the  bankers  floated 
it.  On  August  twentieth  the  White  House  an- 
nounced that,  in  the  opinion  of  the  United  States 
Government,  a  loan  would  not  be  looked  upon 
with  disfavour.  This  was  done  to  assure  the  Mex- 
ican Government  that  the  United  States  was  not 
trying  to  hinder  Mexico  in  her  financial  aspira- 
tions ;  but  as  the  despatch  appeared  in  the  Mexican 
newspapers  it  gave  the  impression  that  the  United 
States  Government  had  sanctioned  a  loan,  and 
that  all  Mexico  had  to  do  was  to  send  a  ship  to 
New  York  for  the  money. 

The  biggest  financial  obstacle  is  the  army. 
Nearly  seventy  per  cent  of  the  annual  budget 
goes  to  the  army  and  navy.  Since  there  is  no 
navy,  this  is  purely  an  army  expense.  The  pay 
rolls  contain  nearly  one  hundred  and  fifteen  thou- 
sand names;  but,  according  to  conservative  esti- 
mates, there  are  not  fifty  thousand  soldiers  in  all 


RISING  OR  SETTING  SUN  IN  MEXICO 

the  government's  forces.  The  army  of  dead  men 
is  so  great  that  this  form  of  graft  is  considered 
as  contraband  of  the  revolution. 

Generals  are  not  the  only  ones  who  are  becom- 
ing millionaires,  measured  in  pesos.  In  Pachuca, 
the  largest  silver  and  gold  mining  city  in  the  world 
to-day,  one  government  official  recently  deposited, 
through  an  American  firm,  seventy-five  thousand 
dollars  in  a  New  York  City  bank  during  seven 
months.  Besides,  he  purchased  considerable 
property  in  the  capital.  The  government  and  the 
foreigners  were  sure  that  this  man  is  dishonest; 
but  his  method  of  grafting  could  not  be  discovered. 

In  Monterey  a  nephew  of  one  of  the  highest 
officials  in  the  government  offered  local  merchants 
a  proposition  of  importing  articles  from  the 
United  States  free  of  high  import  duties,  provided 
they  would  pay  him  from  fifty  to  seventy  per  cent 
of  these  duties  for  his  work,  which  consisted  in 
getting  the  goods  across  the  international  border. 

Fifteen  years  ago  there  thrived  in  Mexico  City 
what  was  known  as  the  Thieves'  Market.  Prop- 
erty stolen  by  maids,  pickpockets,  house  servants 
and  others  was  placed  on  sale  every  Sunday 
morning ;  and  Mexicans  and  foreigners  went  there 
in  search  of  missing  articles  and  bargains.  It 
was  easier  to  obtain  them  in  this  shop  than  to 
start  criminal  investigations. 

Though  the  Thieves '  Market  is  still  doing  busi- 
ness, it  has  competition  now  in  the  antique  shops 
and  curio  stores.  The  revolution  has  turned  many 


MEXICO'S  DILEMMA 

a  church  and  palace  inside  out.  Saunter  through 
these  places  to-day  and  you  will  find  church  orna- 
ments, silverware,  jewels,  Chinese  silks,  Japanese 
idols,  church  bells  and  bishops'  gowns  for  sale. 
You  can  purchase  pieces  of  the  silk  wall  paper 
with  which  Emperor  Maximilian  covered  the  walls 
of  the  National  Palace  when  he  ruled  the  Mexican 
people.  Some  day  Mexico  will  be  a  rich  field  for 
collectors. 

This  is  part  of  the  melodrama;  but  the  govern- 
ment has  already  interfered  in  this  business. 
There  is  an  embargo  on  the  shipment  of  any 
church  property  out  of  the  country. 

In  London,  Paris,  Washington  and  Borne  there 
are,  on  file  with  the  various  governments,  claims 
of  their  citizens  against  the  Eepublic  of  Mexico. 
Until  the  Mexican  Government  determines  upon 
a  definite  policy  in  dealing  with  foreign  interests, 
and  in  settling  these  claims,  recognition  of  the  de 
jure  government  will  be  withheld.  President  Car- 
ranza  has  been  informed  that  some  day  there  will 
be  a  reckoning;  and  this  is  one  of  the  chief  prob- 
lems he  is  trying  to  solve. 

Interwoven  with  this  question,  like  a  black 
thread  in  a  piece  of  white  cloth,  is  the  question 
of  neutrality.  To-day  Mexico  is  not  even  a  pas- 
sive belligerent ;  and  the  hope  of  the  United  States 
Government,  judged  by  its  policy,  is  that  Mexico 
will  adjust  her  internal  affairs  so  that  it  will  not 
be  necessary  for  America  to  divert  her  war 
energies  from  the  European  battlefields.  One  day, 


THESE  ARE   TERRA   COTTA   HEADS   FOUND  BY   PROF.    NIVEN.      THEY 
SHOW   THE   TWO  TYPES   OF   "MEXICAN"   SEVERAL   HUNDRED 
AND   PERHAPS   SEVERAL  THOUSAND  YEARS  AGO 


AN   AZTEC   FAMILY  TREE 

THIS  IS  A  PIECE  OF  TERRA  COTTA  GIVING  THE  LIFE  HISTORY 

OF  AN   AZTEC   INDIAN  FAMILY.      FOUND  BY  PROF.    NIVEN.      PHOTO  BY    MR.    NIVEN 


RISING  OR  SETTING  SUN  IN  MEXICO 

while  talking  to  Don  Luis  Cabrera  in  the  Treasury 
Department,  he  remarked  that,  because  the  senti- 
ment in  the  Chamber  of  Deputies  was  so  strongly 
in  favour  of  neutrality,  the  government  would  not 
change  its  policy;  but,  despite  the  statement  of 
Mr.  Cabrera  and  the  official  attitude  of  Washing- 
ton, neutrality  remains  in  a  variable  state. 

It  is  not  the  attitude  of  the  United  States  or 
Mexico  to-day  that  is  important.  It  is  the  posi- 
tion the  two  nations  will  assume  when  Mexico  has 
to  decide  ultimately  what  she  is  going  to  do. 

The  sentiment  among  the  Mexican  people,  so 
far  as  one  can  judge,  is  one  with  the  motto  "I 
don't  care !"  The  opinion  of  the  Intellectuals,  the 
influential  leaders  back  of  the  government,  and 
of  some  high  officials,  is  different.  These  men  are 
pro-Ally  because  they  are  pro-Democracy  in  Mex- 
ico and  Europe. 

One  Sunday  afternoon  an  American  banker  gave 
a  party  at  his  home  in  the  suburbs.  One  of  the 
chief  members  of  President  Carranza's  cabinet 
was  present.  His  reputation  as  a  master  of  anec- 
dote had  grown  into  fame  since  his  visit  to  the 
United  States,  where  he  had  learned  to  speak 
English. 

"It  was  house-cleaning  time  in  Hades, "  began 
the  secretary,  looking  round  the  room,  into  the 
eyes  of  every  woman  and  man  present,  to  see 
what  impression  his  first  remark  had  made.  It 
delighted  him  that  his  audience  was  international. 
There  were  present  foreign  diplomats,  anti-Mex- 


MEXICO'S  DILEMMA 

lean  Americans,  anti- American  Mexicans,  and  my- 
self. 

"No.  It  is  not  shocking,  as  you  say  in  the 
United  States, "  he  added  with  a  smile.  The 
guests  smiled  politely,  too,  so  as  not  to  discourage 
him.  " Satan, "  he  continued,  "ordered  his  ser- 
vants to  dust  and  clean  all  the  corners  and  rooms 
of  his  palace,  which  stood  at  the  entrance  to  his 
estate."  He  spoke  slowly,  so  as  not  to  make  a 
mistake  in  his  youthful  English. 

"It  was  evening  when  Satan  made  his  inspec- 
tion. He  saw  that  everything  was  perfectly  clean 
inside;  and  then  he  looked  at  the" — he  paused 
for  the  word — "exterior.  Above  the  gate  Satan 
read  the  old  worn  inscription:  'All  hope  aban- 
don, ye  who  enter  here.'  And  Satan  said:  'I 
must  have  a  new  sign.  That  one  is  not  modern. 
It  is  not  up  to  date' — as  you  say  in  New  York. 

' '  Satan  thought  a  while. ' '  The  secretary  paused 
and  puffed  his  cigar.  "He  consulted  some  of  his 
chief  advisers." 

"You  mean  his  Cabinet,"  suggested  an  Amer- 
ican. 

"Ah,  yes,"  replied  the  secretary;  "Satan  con- 
sulted his  Cabinet.  And  the  next  day  the  new 
inscription  above  the  gate  read:  Made  in  Ger- 
many!" 

Though  the  secretary  told  this  story  with  as 
much  enthusiasm  as  if  he  had  been  the  author  of  it, 
I  imagine  it  was  one  he  had  heard  in  the  States. 
It  served  the  purpose  at  this  gathering,  however, 


RISING  OR  SETTING  SUN  IN  MEXICO 

of  crystallising  an  opinion  held  by  many  influen- 
tial Mexicans.  It  would  not  be  fair  to  give  this 
minister's  name,  or  to  conclude  that,  because  he 
is  anti-German,  the  government  is  about  to  change 
its  policy  toward  the  belligerents. 

Mexico  is  awaiting  a  provocation.  Perhaps  it 
would  be  better  to  say  that  it  would  not  be  wise 
for  Germany  to  provoke  her.  The  famous  Zim- 
mermann  letter,  revealing  the  German  opinion 
regarding  annexation,  has  been  forgotten;  but 
Germany  is  again  playing  with  neutrality  by  her 
growing  intrigues  in  Mexico.  The  I.  W.  W.  have 
become  as  active  in  Mexico  against  foreign  inter- 
ests as  in  the  United  States ;  and  the  money  they 
use  is  called  marks. 

President  Carranza 's  authority  is,  in  some 
states,  only  nominal  to-day.  A  few  governors, 
especially  if  they  are  military  leaders,  interpret 
and  obey  his  orders  as  they  see  fit.  For  this 
reason  the  Chief  Executive  is  commonly  called  the 
Easy  Boss ;  but  what  for  some  time  Mr.  Carranza 
has  been  becoming  is  a  Calm  Dictator.  He  has 
been  accomplishing  some  reforms  so  quietly  that 
even  the  men  deposed  have  been  unaware  of  hi\ 
object. 

When  Sefior  Carranza  first  took  office  he  had  to 
appoint  his  popular  generals  to  Cabinet  positions. 
To  date  he  has  eliminated  most  of  them,  and  with 
great  skill.  One  man,  who  was  thought  to  be  dis- 
honest and  who  was  anti-foreign  in  every  policy, 
demanded  a  certain  Cabinet  berth — the  Depart- 


126  MEXICO'S  DILEMMA 

ment  of  Fomento,  or  Public  Works.  Mr.  Carranza 
could  not  remove  him,  so  he  wrote  a  decree  chang- 
ing the  duties  of  this  department,  taking  all  the 
important  foreign  work  out  of  his  hands.  The 
foreigners  were  delighted ;  and  so  was  the  Cabinet 
officer,  because  he  had  other  things  to  do.  He 
didn't  care  to  deal  with  foreigners,  anyway. 

A  year  ago  from  the  time  I  was  in  Mexico  ex- 
President  Diaz  was  regarded  as  having  been  the 
worst  dictator  and  boss  Mexico  ever  had — by  the 
Mexicans.  To-day  he  is  being  considered  in  a 
different  light,  though  his  evil  acts  have  not  been 
forgotten.  Fifteen  years  ago,  when  a  list  of  ten 
names  was  placed  before  Diaz  so  that  he  might 
select  a  senator  from  Coahuila,  he  picked  the 
ninth,  that  of  Sefior  Carranza.  To-day  this  sen- 
ator is  Diaz's  successor,  and  he  had  developed 
many  of  the  qualities  of  leadership  the  old  Indian 
had.  Mr.  Carranza 's  friends  say  that  he  is  devel- 
oping a  Democratic  dictatorship  in  Mexico;  but 
the  foreigners  add:  "By  his  acts  we  shall  judge 
him." 

Still,  the  question  is  asked:  "Was  Diaz  a 
prophet,  too!" 

Because  of  the  universal  lack  of  education 
among  Indians  and  Mexicans,  a  representative 
government  such  as  exists  in  Mexico  to-day  is,  in 
fact,  only  a  representation  of  the  strongest  parties 
and  elements  supporting  Carranza;  but  Mexico 
remains  more  of  a  nation  over  Mr.  Carranza  than 
under  him.  He  dominates  the  Central  Govern- 


RISING  OR  SETTING  SUN  IN  MEXICO    127 

ment  and  he  holds  the  nominal  support  of  his  old 
military  chiefs ;  though,  very  often,  they  take  mat- 
ters into  their  own  hands,  such  as  taxation  of 
foreign  mines  and  ranches.  Though  the  President 
has  compelled  some  of  these  men  to  resign,  the 
task  is  so  enormous  that  it  cannot  be  completed 
for  some  time.  Manana  is  a  famous  expression 
in  Mexico  when  one  asks  how  soon  something  can 
be  done;  and,  though  manana  means  to-morrow 
when  translated  into  English,  it  signifies  a  much 
longer  period  when  applied  to  work. 

The  iron  policy  in  Mexico,  if  one  may  call  any 
act  there  by  that  term,  belongs  to  the  military 
chiefs.  There  is  no  lack  of  firmness  when  they 
act. 

Don  Luis  Cabrera,  former  Secretary  of  the 
Treasury  and  now  government  leader  in  the  Cham- 
ber of  Deputies,  is  considered  the  intellectual 
leader  of  the  country;  but  one  of  his  hobbies  is 
the  hunting  of  ducks.  Still,  this  story  is  not  to 
be  about  a  duck  hunt.  More  interesting  than  such 
excursions  are  his  activities  in  Parliament. 

A  few  days  before  the  session  adjourned,  in 
August,  1917,  some  members  objected  in  uncen- 
sored  terms  to  the  presence  of  Americans  in  Mex- 
ico City  as  members  of  a  financial  commission 
upon  the  invitation  of  the  government.  Their 
activities  were  due  more  to  Cabrera's  initiative 
than  to  any  other  official's. 

Two  American  authorities — Professor  Chand- 
ler, of  Columbia  University,  and  Professor  Kem- 


128  MEXICO'S  DILEMMA 

merer,  of  Princeton — had  just  reached  the  capital. 
A  member  of  the  Deputies  declared  he  thought 
their  presence  ought  to  be  investigated,  and  that 
the  government  ought  to  be  questioned  about  such 
an  important  matter.  He  denounced  Americans  in 
general  and  the  government  more  particularly. 

Cabrera,  who  is  always  on  hand  to  support  the 
government,  saw  the  members  supporting  the 
speaker  and  in  a  clever  speech  stated  that  he 
thought  the  government  ought  to  be  interrogated. 
The  investigation  was  set  for  the  next  day. 

The  next  day  he  appeared  in  a  different  role. 
Cabrera  defended  the  government!  A  member 
asked  whether  there  were  no  Mexicans  capable  of 
doing  the  work  the  Americans  were  asked  to  do ; 
whether  Mexicans  could  not  audit  the  govern- 
ment's accounts.  Certainly,  replied  Cabrera  in 
substance ;  but  unfortunately  most  of  these  Mex- 
icans are  out  of  the  country.  Senor  Limantour, 
who  is  in  Paris,  could  do  it — Limantour  was  Sec- 
retary of  the  Treasury  under  Diaz. 

The  opposition  would  not  be  quieted  and 
Cabrera  began  one  of  his  famous  orations.  "Be- 
cause Thomas  A.  Edison,  an  American  citizen, 
invented  electric  lights  is  no  reason  why  Mexico 
should  burn  candles,"  declared  Cabrera  in  part. 
These  experts,  he  added,  had  been  consulted  by 
the  United  States  and  foreign  governments;  and 
Mexico,  desiring  to  obtain  the  services  of  financial 
authorities,  had  invited  them  as  any  other  govern- 
ment might. 


RISING  OR  SETTING  SUN  IN  MEXICO   129 

Cabrera's  address  and  his  knowledge  of  parlia- 
mentary rules  won  the  day  for  the  government, 
and  the  speaker  escaped  without  a  challenge  to  a 
duel. 

He  has  been  challenged  more  than  once;  but  his 
opponents  know  that  he  is  a  crack  shot  at  ducks. 

The  visit  of  this  American  commission  and 
the  growing  tendency  among  officials  to  be  more 
friendly  to  the  United  States  are  the  hopeful  signs 
in  Mexico  to-day.  The  financial  experts  were 
charged  with  the  duty  of  investigating  the  receipts 
and  expenditures  of  the  government  departments, 
with  the  object  of  making  recommendations  to 
establish  efficiency  and  honesty.  A  giant's  task 
it  was. 

By  many  this  was  interpreted  as  the  initial  step 
by  the  government  in  a  new  policy  toward  America 
and  outside  interests.  Be  that  as  it  may,  the  Car- 
ranza  Government  was  much  more  friendly  to  the 
United  States  than  it  had  ever  been.  The  Chief 
Executive  time  and  again  had  ignored  the  protests 
of  the  German  Minister  because  American  war- 
ships were  in  Mexican  waters  at  Tampico.  This 
form  of  friendly  neutrality  was  not  agreeable  to 
Herr  von  Eckhardt.  What  friendship  there  is  to- 
day is  due  to  Ambassador  Fletcher.  He  was 
hissed  on  May  first,  1917,  when  Carranza  took  the 
oath  of  office,  and  Von  Eckhardt  was  applauded. 
If  there  were  a  celebration  to-day  the  honours 
would  be  reversed.  That  much  the  ambassador 
did  in  four  months.  He  may  yet  have  the  Mex- 


130  MEXICO'S  DILEMMA 

leans  cheering  Uncle  Sam's  troops  in  France.  One 
never  can  tell  what  diplomacy  may  do  next. 

One  of  the  needs  of  Mexico  is  an  efficient  rail- 
road system.  A  curious  attempt  at  a  refutation 
of  this  asservation  of  mine  I  have  printed  in  the 
appendix  of  this  volume.  Here  I  reaffirm  that  for 
seven  years  practically  no  repairs  have  been  made 
on  any  of  the  lines — either  those  owned  by  the 
government  or  those  owned  abroad  and  operated 
by  the  authorities.  In  Monterey  there  are  the 
wrecks  of  four  hundred  freight  cars,  burned  by 
General  Villa  as  a  sacrifice  to  his  legions  when 
they  made  their  last  march  through  the  city. 

A  government  official  has  inspected  other  lines 
and  found  four  thousand  cars  that  can  be  repaired ; 
but  money,  labourers  and  materials  are  needed. 
The  first  and  third  can  come  only  from  the  United 
States.  And  it  has  been  explained  to  the  govern- 
ment by  private  parties  that,  even  if  Mexico  had 
the  money  to  purchase  engines  and  car-construc- 
tion material,  it  would  be  three  years  before  they 
could  be  delivered,  unless — there  is  always  a  way 
to  evade  contracts — Mexico  were  an  ally  of  the 
United  States.  And  in  that  case  every  effort  would 
be  made  to  aid  her.  Allies  always  have  the  first 
call. 

Multiply  the  task  that  faced  Diaz  when  he  was 
struggling  with  the  conflicting  elements  of  Mexico 
in  1877  by  the  increase  in  population  in  Mexico, 
and  by  the  increase  in  foreign  capital  invested,  and 
you  will  have  an  understanding  of  what  faces 


RISING  OR  SETTING  SUN  IN  MEXICO   131 

Senor  Carranza.  Forty  years  ago  the  United 
States  would  not  recognise  the  official  or  de  jure 
government  of  Diaz,  because  he  was  struggling 
with  the  same  tasks  and  inactions  of  the  present 
day,  but  on  a  smaller  scale. 

Whether  Senor  Carranza  will  adopt  the  same 
attitude  toward  foreigners  that  Don  Porfirio  did, 
and  whether  he  will  try  to  reconstruct  Mexico  with 
the  assistance  of  outside  brains,  are  questions 
which  events  alone  can  answer.  Senor  Carranza 
has  the  same  opportunities.  So  far  as  the  United 
States  is  concerned,  one  might  judge  from  the 
former  policy  of  President  Wilson  that  he  was 
willing  to  help  the  Republic  get  on  its  financial 
and  reconstruction  feet,  even  if  the  alignment  of 
Mexico  on  the  side  of  the  Allies  were  a  temporary 
burden.  The  United  States  is  endeavouring  to 
help  the  nation  by  advice  and  counsel. 

One  suggestion  which  has  been  made  to  Presi- 
dent Carranza  is  that  he  shall  abolish  the  decree 
fixing  an  artificial  value  in  exchange  for  American 
money.  Formerly  one  dollar  was  equal  to  two 
pesos  in  Mexican  currency.  To-day,  by  a  govern- 
ment order,  a  dollar  is  accepted  by  the  government 
as  equal  to  but  1.85  pesos  in  gold,  or  1.75  pesos 
in  United  States  bank  notes.  If  the  Mexican  Gov- 
ernment would  agree  to  the  old  standard — so  it  is 
stated — American  gold  and  silver  would  be  used  in 
exchange  and  increase  the  amount  of  available 
currency.  But  the  government  has  not  acted.  It 
is  claimed  that  an  official  is  benefiting  by  the 


MEXICO'S  DILEMMA 

present  arrangement;  and  he  is  apparently  strong 
enough  to  prevent  a  change.  But  perhaps  not! 
The  government  may  not  be  convinced. 

The  mint  in  Mexico  City  is  coining  fifty  thou- 
sand dollars'  worth  of  silver  fifty-centavo  pieces 
every  day,  and  much  more  gold.  But  no  machine 
or  collection  of  machines  can  make  money  as  fast 
as  a  wasteful  Eepublic  can  spend  it.  I  doubt 
whether  one  machine  can  make  money  fast  enough 
to  pay  the  salary  of  a  general  who,  by  chance,  may 
be  a  governor,  an  inspector,  and  something  else 
too.  One  man  in  Mexico  is  not  necessarily  made 
for  one  job. 

Since  the  spring  of  1917  there  has  been  a  change 
in  the  attitude  of  certain  foreign  investors  toward 
the  Carranza  Government.  There  has  been  ap- 
parent an  inclination  to  work  with  the  officials. 
Canadian  and  American  merchants  have  been 
again  looking  after  Mexican  business.  So,  too, 
the  British.  Some  of  these  people  have  already 
discussed  claims  with  the  government,  and  there 
has  been  a  belief  that  they  will  be  able  to  agree 
with  the  officials.  This  is  shocking  those  who  be- 
lieved there  was  no  chance  of  the  Carranza  Gov- 
ernment 's  continuing  so  long. 

While  in  Mexico,  talking  with  a  large  number 
of  foreigners,  I  found  that  those  who  were  show- 
ing a  willingness  to  co-operate  with  the  authorities 
were  not  only  being  encouraged  by  the  results  but 
they  believed  it  would  be  profitable. 

"  Concessions  "  is  the  most  hated  of  all  words  by 


PROFESSOR   WILLIAM    NIVEN,   WHO   HAS   CHARGE   OF 
THE  EXCAVATIONS    NEAR   MEXICO   CITY 


RISING  OR  SETTING  SUN  IN  MEXICO   133 

the  revolutionists,  because  it  was  said  that  foreign- 
ers robbed  Mexico  with  concessions ;  but  that  word 
is  actually  being  used  to-day  to  describe  what  the 
present  government  is  doing.  I  met  an  American 
who  had  recently  obtained  a  water-power  site  near 
Mexico  City.  Engineers  calculated  that  the  falls 
would  develop  twenty-four  thousand  horse-power. 
This  was  concession;  and  it  had  been  granted  by 
the  government  that  was  opposed  to  such  things 
when  it  began. 

Hated,  cursed,  vilified  and  condemned,  Venus- 
tiano  Carranza  remains  the  strongest  political 
figure  in  Mexico,  and  the  only  man  who  can  guide 
the  fateful  and  fretful  destinies  of  the  Republic 
to-day.  All  agree  about  this,  Mexicans  and  for- 
eigners. Carranza  or  intervention! 

There  is  no  organised  revolution  to-day.  Most 
Mexicans  will  tell  you  that  Villa  has  no  political 
influence,  that  his  men  are  deserting  from  day  to 
day.  But  Villa  is  a  Mexican  Humpty-Dumpty 
who  falls  to  pieces  one  day  and  is  put  together  a 
few  months  later. 

When  I  was  in  Tampico  I  was  told  that  Villa 
had  been  in  communication  with  Pelaez  and  that 
General  Enriquez  had  been  designated  by  Pelaez 
to  serve  with  Villa  on  his  staff  in  case  of  another 
revolution.  It  is  significant,  also,  that  the  troops 
of  Manuel  Pelaez  call  themselves  "Villistas." 

At  one  time  there  was  a  plan  under  way  for 
Pelaez  and  Villa  representatives  to  meet  in  New 
York  for  a  conference,  but  according  to  a  public 


134>  MEXICO'S  DILEMMA 

announcement  by  Villa  in  November,  1917,  he 
travelled  through  Mexico  in  disguise  and  con- 
ferred with  the  other  rebel  chiefs. 

Whatever  may  be  Villa's  political  objects  and 
aims  one  thing  is  apparent;  that  is  that  he  could 
not  make  a  stand  against  the  present  government 
of  Mexico  without  assistance  from  interests  in  the 
United  States  opposed  to  Seiior  Carranza,  or  from 
German  influences  in  Mexico.  Villa  is  supported 
by  one  or  the  other  of  these,  perhaps  by  both. 

One  day  in  1917  three  hundred  Villistas  strolled 
into  Torreon,  and  then  out  to  an  American  ranch, 
where  they  informed  the  manager  that  Villa  had 
discharged  them.  Perhaps  there  was  no  more 
loot !  Perhaps  Carranza  is  an  easy  boss.  It  may 
be  that  this  is  the  only  kind  of  dictator  the  Mexi- 
can people  will  follow  now. 

But  despite  all  this,  the  puzzle  of  the  Mexican 
Sphinx  remains:  What  Will  Mexico  Do?  How 
will  the  government  interpret  the  constitution? 
Will  the  authorities  return  confiscated  property? 
Will  the  government  adjust  foreign  claims  ?  Will 
the  banks  be  reimbursed? 

Sphinxes  are  not  found  in  many  parts  of  the 
world,  but  there  are  two  in  Mexico.  Standing  at 
the  corner  of  Calle  San  Francisco  and  Avenida 
Juarez,  looking  toward  Chapultepec  Park  one  can 
see,  on  the  right,  the  National  Theatre,  the  so- 
called  White  Elephant,  with  its  incomplete  marble 
walls  glistening  in  the  sunlight  like  a  giant 's  helio- 
graph. In  the  distance  towers  the  rusty  steel 


RISING  OR  SETTING  SUN  IN  MEXICO    135 

skeleton  of  the  proposed  House  of  Parliament. 
The  Mexicans  call  it  the  Black  Elephant. 

These  are  the  Mexican  Sphinxes — the  symbols 
of  Mexico  to-day.  Whether  these  structures  are 
completed  and  transformed  into  modern  architec- 
tural monuments  depends  upon  the  answers  to  the 
questions  facing  the  government.  Whether  they 
rattle  to  pieces  or  wear  away  unused  depends  upon 
the  replies  Sefior  Carranza  makes  to  the  questions 
the  world  is  asking.  These  two  buildings,  or  parts 
thereof — just  as  Mexico  itself — contain  possibili- 
ties for  success  or  failure.  But  the  question  their 
bleak  walls  and  iron  bones  ask  is  answered  with 
the  echo: 

"  What  will  Mexico  do! " 

Aristotle  once  remarked  that,  to  be  complete, 
things  must  have  a  beginning,  a  middle  and  an 
end.  How  simple;  and  yet  how  informing!  This 
chapter,  so  far,  has  only  a  beginning  and  a  middle ; 
therefore,  it  is  not  complete. 

I  began  by  asking  whether  the  sun  was  rising 
or  setting  in  Mexico.  I  shall  answer :  The  sun  is 
rising;  but  I  cannot  tell  whether  there  will  be 
rain  to-morrow. 


CHAPTER  VII 

THE  FUTUBE 

MUST  the  United  States  intervene  in  Mex- 
ico before  that  country  can  take  its  place 
among  the  great  nations  of  the  world?" 

Mexicans  and  foreigners  ask  this  question  be- 
cause to  most  men  it  seems  a  pity  that  a  nation 
with  such  great  possibilities  should  be  under  a 
shadow  of  internal  strife  from  decade  to  decade. 

The  answer,  to  my  mind,  is:  "Yes,  but  there 
is  more  than  one  way  to  intervene  in  Mexico." 

I  do  not  believe  that  the  United  States  would 
be  justified  to-day  in  intervening  in  Mexico  with 
armed  forces  to  protect  American  property  or 
American  life  because  I  have  confidence  in  the 
possibilities  of  a  Mexican  Government  if  the  lead- 
ers and  the  people  are  given  an  opportunity  to 
work  out  their  own  political  destiny.  But  if  Ger- 
man intrigue,  directed  from  Berlin,  continues  to 
stir  up  hatred  for  the  United  States  and  continues 
as  a  source  of  irritation  and  trouble,  and  if  the 
United  States  or  her  Allies  during  the  war  are 
attacked  from  Mexico,  the  situation  might  change 
over  night. 

It  is  obvious,  I  think,  to  most  people  who  have 

136 


THE  FUTURE  137 

travelled  in  Mexico  recently  that  the  people  and 

the  government  of  that  country  cannot  grow  in 

t  intelligence  and  economic  strength  without  the 

^^eo-operation  of  foreigners.    Mexico  needs  foreign 

help  the  same  as  every  young  nation,  and  every 

nation  which  has  gone  through  a  period  of  unrest, 

needs  foreign  assistance.    The  Mexican  problem 

is  to  make  the  Mexican  authorities  understand 

that  foreigners  want  to  help  Mexico. 

The  first  need  of  the  Mexican  people  to-day  is 
education.  Of  the  population  which  is  estimated 
at  fifteen  million  only  about  two  million,  accord- 
ing to  recent  estimates,  can  read  and  write.  Igno- 
rance is  at  the  bottom  of  banditry.  Ignorance  is 
what  enables  unscrupulous  men  to  rob  the  people 
of  land  and  wages.  Ignorance  is  what  keeps  the 
peons  dressed  in  rags. 

Mexico  needs  a  public  school  system  from  one 
end  of  the  country  to  the  other,  and  in  establish- 
ing such  a  system  it  should  be  understood  by  Mex- 
ico that  substantial  progress  can  be  expected  only 
by  calling  foreign  educators  to  Mexico  to  superin- 
tend the  work.  Mexico  needs  great  educational 
directors,  such  as  the  state  superintendents  of 
public  instruction  in  some  of  our  states.  Mexico 
needs  men  like  the  Presidents  of  our  great  univer- 
sities to  help  her  build  up  an  educational  system. 

Mexico  needs  an  educational  system  that  will 
begin  not  only  with  the  children  but  with  the  men 
and  women  of  to-day.  They,  too,  must  be  taught 
to  read  and  write  and  think.  Mexico  needs  tech- 


138  MEXICO'S  DILEMMA 

nical  public  school  education  for  men.  Think  of 
the  hundreds  of  thousands  of  children  in  Mexico 
who  know  nothing  about  schools ! 

To  develop  her  great  resources  Mexico  needs 
foreign  brains  and  foreign  capital.  The  United 
States  needed  it  in  the  early  days  of  her  existence. 
Every  country  needs  foreign  help  to  "get  on  its 
feet,"  and  Mexico  is  very  far  indeed  from  being 
an  exception,  especially  after  the  many  years  of 
revolutions. 

Mexico  needs  foreigners  to  advise  her  regarding 
finance,  political  economy  and  labour.  Under 
President  Carranza  Mexico  began  by  asking  two 
university  professors  to  come  to  Mexico  City  and 
study  the  financial  problems  of  the  Eepublic.  This, 
indeed,  is  a  step  in  advance. 

Mexico 's  future  depends  upon  her  willingness 
to  have  foreigners  assist  her.  This  is  what  I 
would  call  political  and  social  intervention.  If 
Mexico  is  to  be  helped  this  sort  of  intervention 
must  take  place. 

I  look  upon  Mexico  as  having  more  possibilities 
than  any  of  twelve  countries  I  have  visited  during 
the  past  two  years — possibilities  for  success  or 
failure.  And  while  the  nations  of  the  world,  par- 
ticularly the  United  States  and  her  Allies,  might 
be  glad  to  advise  Mexico,  the  choice  rests  entirely 
with  that  country.  Mexico  can  be  a  friend  or  a 
foe  of  the  United  States  and  she  has  more  to  gain 
through  friendship  than  through  enmity. 

Within  fifty  years  from  to-day  Mexico  can  take 


THE  FUTURE  139 

er  place  among  the  greatest  nations  of  the  world 
if  Mexico  is  willing  to  seek  the  co-operation  of  the 
great  Eepublics  and  Democracies  of  the  world. 
Mexico,  as  a  Republic,  owes  a  duty  to  her  sister 
nations  as  well  as  to  herself.  Opportunity  knocks 
at  the  doors  of  the  Republic.  The  battle  for  Civili- 
sation, for  Humanity,  for  International  Right  and 
for  Democracy  is  being  fought  throughout  the 
world.  Mexico  is  being  tempted  by  the  agents  of 
Berlin.  Not  only  President  Carranza  but  the 
other  leaders  of  Mexico  must  choose  between  a 
German  conquest  and  American  and  Allied 
co-operation. 


APPENDIX 


APPENDIX  A 

BILLS   PRESENTED   TO   THE    CHAMBER  OF   DEPUTIES  TO 
RELIEVE  THE  FINANCIAL  CRISIS 


TRANSLATION — Bill  presented  to  Congress  of 
Mexico  providing  for  an  interior  or  foreign  loan 
to  cover  the  current  deficit  of  the  Government. 
From  El  Democrata,  Mexico  City,  July  8, 1917. 

MEXICO  NEEDS  TO  OBTAIN  A  LOAN  OF  150,000,000 

PESOS  TO  COVER  THE  DEFICITS  IN  THE 

NATIONAL  BUDGETS. 


THE  EXECUTIVE,  WITH  THE  SAME  TENDENCIES  WHICH 

ACTUATED  THE  REVOLUTION,  WILL  AVOID  ANY 

FOREIGN  LOAN  AND  ATTEMPT  TO  MAKE 

THE   FINANCIAL   DEAL   IN    THE 

COUNTRY. 


IF    IMPOSSIBLE    HE    BELIEVES    IN    ADVANCE    THAT    HIS 

CONDUCT  WILL  BE  JUSTIFIED  SINCE  HE  IS 

TRYING  TO  DEFINITELY  REORGANISE 

FINANCES. 


In  the  Department  of  Finance  and  Public  Credit 
we  were  given  yesterday  by  the  Sub-Secretary  in 

143 


144  APPENDIX  A 

Charge  of  this  Department,  Don  Eafael  Nieto,  a 
copy  of  the  following  important  bill  in  which  the 
Executive  is  authorised  to  negotiate  a  loan  up  to 
150,000,000  pesos  to  be  exclusively  destined  to 
cover  the  deficit  appearing  in  the  national  budgets 
until  they  are  adjusted.  The  text  of  the  important 
bill  to  which  we  refer,  and  which  will  soon  go  be- 
fore Congress,  states  as  follows : 

"The  Congress  of  the  Union  has  been  already 
informed  by  the  Executive  that  the  budgets  of  the 
federation  at  present  show  a  monthly  deficit  of 
about  5,000,000  pesos. 

"To  make  up  this  figure  we  took  into  account 
only  the  normal  expenses  of  administration,  omit- 
ting the  great  number  of  small  obligations  of  the 
Government  which  were  not  considered  urgent, 
but  which  in  any  case  organise  a  great  floating 
debt  which  is  increasing  day  by  day. 

1 1  If,  furthermore,  we  take  into  consideration  the 
high  cost  of  living,  higher  every  day,  and  the  ne- 
cessity which  we  will  later  meet  as  a  consequence 
of  it  of  raising  the  wages  of  public  employes; 
if  we  take  into  account  the  possibility  that  the 
work  of  pacification  already  is  necessitating  con- 
stant expenses,  the  supposition  that  the  real  deficit 
will  exceed  the  amount  above  is  not  exaggerated. 

"In  order  to  arrest  the  gravity  of  the  foregoing 
considerations  it  is  sufficient  to  state  others  in 
respect  to  the  future  which  makes  a  favourable 


APPENDIX  A  145 

solution  of  the  financial  problems  appear  less  re- 
mote. 

"On  the  one  hand  for  some  time  the  Government 
has  not  believed  the  time  has  come  to  pay  divers 
claims  which  may  be  presented  on  account  of  dam- 
ages caused  by  the  revolution,  although  it  is  now 
studying  the  particular  way  to  recognise  and 
liquidate  them,  and  in  due  time  will  have  to  sub- 
mit a  bill  covering  this  matter  to  Congress. 

' '  In  the  same  order  of  ideas  the  Executive  does 
not  believe  that  the  payment  of  the  public  exterior 
debt  should  be  renewed  until  the  deficit  referred 
to  herein  has  been  met.  These  two  important  re- 
sponsibilities then  may  by  the  very  force  of  cir- 
cumstances be  put  off  until  later,  and  should  there- 
fore be  excluded  from  consideration  for  the 
present. 

"On  the  other  hand  the  present  incomes,  in 
spite  of  the  fact  that  conditions  of  the  country 
have  not  yet  resumed  normality,  are  in  compari- 
son greater  than  those  which  were  being  received 
in  the  period  before  the  revolution  and  in  view  of 
this  fact,  which  has  some  significance  as  showing 
the  vitality  of  our  people,  it  is  logical  to  hope 
that  when  peace  is  re-established  in  the  whole  of 
the  Republic  and  railway  service  and  communica- 
tion in  general  are  completely  normalised,  the 
discrepancy  between  income  and  expenses  will 
gradually  diminish  until  the  day  in  which  the  dis- 
crepancy, which  is  now  one  of  the  most  serious 
difficulties  of  the  Government,  shall  disappear. 


146  APPENDIX  A 

"As  the  indispensable  bases  for  these  objects 
can  be  realised  in  the  effective  liquidation  of  the 
present  deficit,  since  its  existence  would  indefi- 
nitely retire  the  equilibrium  desired,  the  Execu- 
tive believes  the  time  has  come  when  it  is  neces- 
sary to  obtain  a  loan  exclusively  destined  to  fill 
such  objects,  and  hopes  that  the  National  Con- 
gress, sharing  with  him  the  conviction  that  such 
a  means  is  the  only  effective  way  to  meet  this  im- 
portant emergency,  will  at  once  grant  him  the 
authorisation  necessary  to  begin  due  explorations 
in  financial  centres  in  the  Eepublic  and  in  other 
countries,  impossible  to  know  in  advance  even  the 
possibility  of  obtaining  a  loan  of  such  a  nature. 

"On  account  of  these  same  difficulties  the 
Executive  could  not  propose  to  the  Congress  pre- 
cise bases  in  respect  to  the  exact  amount  of  the 
operation  and  the  conditions  of  issue,  maturity, 
interest  rate,  etc.,  for  the  fixing  of  these  details 
principally  depends  on  the  conditions  of  the 
world's  financial  markets  which,  as  one  of  the 
many  effects  of  the  war,  have  lost  all  stability  and 
it  may  be  said  change  from  day  to  day. 

"Therefore,  the  Executive  deems  prudent  to 
ask  at  once  the  Congress  of  the  Union  to  grant 
him  necessary  powers  to  take  all  preliminary  steps 
which  will  permit  him  to  fix  in  the  proper  time 
these  terms  and  possible  conditions  of  the  loan, 
the  nature  of  the  guarantees  that  will  try  to  be 
established  so  far  as  possible  on  the  basis  that 
it  shall  not  impose  a  charge  upon  public  taxes, 


APPENDIX  A  147 

the  class  of  contracts  which  should  be  entered  into 
with  the  holders  of  former  obligations  and  all 
other  aspects  of  the  operations,  reserving  the 
right  to  submit  them  definitely  to  the  Congress  so 
that  the  Houses  may  determine  the  propriety  of 
carrying  the  project  into  execution. 

"The  Executive,  following  the  same  tendencies 
which  prompted  the  Revolution  to  avoid  any  ex- 
terior debt,  will  make  all  sorts  of  efforts  to  carry 
out  the  financial  transaction  within  the  territory 
of  the  Eepublic  and  will  not  apply  to  foreign 
countries  until  he  is  convinced  of  the  impossibility 
of  obtaining  an  interior  loan. 

"If  this  impossibility  shall  oblige  him  to  dis- 
obey the  tendencies  indicated,  he  believes  in  ad- 
vance that  his  conduct  will  be  justified  in  consid- 
eration that  the  object  he  seeks  is  to  definitely 
reorganise  by  peaceful  means  the  finances  and 
national  public  payments. 

"In  view  of  the  foregoing,  the  Executive  hopes 
that  the  national  representation  will  see  fit  to  give 
its  approval  to  the  bill  hereto  annexed.  Mexico 
City,  July  7, 1917.  V.  Carranza  (Bubrica)." 

BILL   PROPOSED 

"The  Congress  of  the  United  States  of  Mexico 
in  use  of  the  power  conceded  by  Section  VIII,  of 
Article  73,  of  the  federal  constitution,  has  seen 
fit  to  decree  the  following : 

"Art.  1st. — The  Executive  is  authorised  to  nego- 


148  APPENDIX  A 

tiate  a  loan  up  to  150,000,000  pesos  to  be  exclu- 
sively destined  to  cover  the  deficits  met  in  the 
national  budgets  until  they  are  adjusted. 

"Art.  2nd. — The  Executive  is  empowered  to 
contract  the  loan  referred  to  in  the  foregoing 
article  either  in  the  Eepublic  or  in  foreign  coun- 
tries in  the  form  of  an  operation  over  a  long 
period,  or  by  obligations  of  the  Treasury  re- 
deemable or  convertible  in  a  brief  term  according 
to  the  greater  or  lesser  difficulty  encountered  in 
obtaining  the  funds. 

"He  is  also  empowered  to  stipulate  the  condi- 
tions of  interest,  the  type  of  interest,  the  form 
of  amortization,  the  guarantee,  and  all  other  ar- 
rangements relating  to  the  operation,  including 
the  contracts  to  be  entered  into  with  the  holders 
of  legitimate  former  obligations. 

"Art.  3rd. — All  contracts  entered  into  should 
be  submitted  to  the  Congress  of  the  Union  so  that 
Congress  may  approve  them  as  a  condition  prece- 
dent to  giving  them  value." 


APPENDIX  A  149 

II 

TRANSLATION — Bill  authorising  the  executive  of 
Mexico  to  negotiate  a  loan  for  the  rehabilitation 
of  the  National  Bailways. — From  El  Universal, 
Mexico  City,  July  10,  1917. 

LOAN  OF  FIFTY  MILLION  PESOS  FOB  THE  NATIONAL 

LINES. 

WILL  BE  DESTINED  TO  THE  REPAIR  OF  TRACK,  REPLACE- 
MENT OF  EQUIPMENT  AND  THE  REORGANISA- 
TION OF  SERVICE. 

The  Executive  has  sent  to  the  Chamber  of  Depu- 
ties a  bill  in  which  the  National  Representation  is 
informed  that  it  is  indispensable  for  the  Govern- 
ment to  contract  a  loan  of  50,000,000  pesos  to  cope 
with  the  imperious  necessities  of  the  railway  prob- 
lem in  the  Republic. 

The  text  of  the  bill  is  as  follows : 


STATEMENT   OF   THE   QUESTION 

By  reason  of  the  needs  of  the  campaign,  the 
Constitutionalist  Government  found  itself  obliged 
to  take  possession,  first  of  certain  lines  of  rail- 
way crossing  the  country,  and  later  of  entire  sys- 
tems, very  particularly  of  the  system  of  the  Na- 
tional Railways  of  Mexico.  To  administer  this 


150  APPENDIX  A 

great  organisation,  the  Constitutionalist  Govern- 
ment created  an  autonomous  Department,  called 
Direction  of  Constitutionalist  Railways.  The 
execution  of  such  acts  was  not  arbitrary,  but  based 
on  express  provisions  of  the  Railway  Law. 

This  state  of  affairs  and  the  destruction  caused 
by  the  war  created  a  situation,  special  to  the 
Mexican  Eailway  and  special  to  the  National  Rail- 
way of  Mexico  Company,  in  which  the  Nation  has 
a  preponderance  of  shares.  This  company  re- 
mains in  existence  to  conserve  its  legal  personal- 
ity, and  to  administer  certain  properties  outside 
of  the  traffic  service ;  but  the  service  of  traffic  was 
suspended  and  the  system  of  exploitation  was 
altered.  This  being  so,  on  constitutional  reorgani- 
sation of  the  country,  the  National  Government 
must  solve  the  grave  problem  of  the  rehabilitation 
of  the  railway  companies,  that  they  may  carry 
on  the  service  of  traffic  in  the  constant  and  sys- 
tematic manner  satisfactory  to  the  needs  of  the 
Nation,  which  cannot  live  without  a  proper  service 
of  railway  transport. 

The  condition  of  the  National  Railways  of  Mex- 
ico Company  particularly  interests  the  Govern- 
ment, as  much  because  this  system  is  the  most 
extensive  and  necessary  for  the  national  life,  as 
because  the  country  has  extended  its  guaranty 
for  the  payment  of  its  debt  and  is  the  owner  of 
the  majority  of  its  shares,  by  reason  of  which  it 
controls  the  system. 


APPENDIX  A  151 

THE  BAILWAY   PEOBLEM 

There  are  three  problems  related  to  the  Na- 
tional Eailways.  First,  the  reconstruction  of  the 
lines,  including  the  repair  of  fixed  material;  the 
construction  of  the  works  of  art  destroyed  and  the 
replacement  of  equipment.  The  payment  of  the 
indemnity  which  according  to  the  Railway  Law 
the  Government  must  make  to  the  Company  must 
also  be  considered;  in  other  terms,  the  first  prob- 
lem consists  in  the  settlement  between  the  Com- 
pany and  the  Government.  Second,  the  financial 
reorganisation  of  the  company,  including  the  in- 
dispensable arrangements  with  the  Trust  Com- 
panies representing  the  bond  holders,  the  consoli- 
dation of  the  floating  debt  and  the  arrangements 
relating  to  certain  bonds  to  secure  interests  that 
have  matured.  Third,  the  administrative  and 
technical  reorganisation  of  the  Company's  serv- 
ices, so  that  the  system  may  be  again  operated  by 
the  owner  company  on  the  new  bases  exacted  by 
the  social  transformation  the  Nation  has  suffered. 

Of  all  these  problems  the  most  pressing  is  the 
replacement  of  the  lines,  which  public  necessity  is 
imperiously  demanding.  At  the  same  time  the 
solution  of  this  problem  is  indispensable  so  the 
rest  may  be  studied  and  decided  successfully. 

The  Executive  of  the  Nation  needs,  then,  to  be 
ready  to  cope  with  all  the  obligations  related  with 
this  preliminary  problem,  and  for  this  needs  the 
authorisation  of  the  Legislative  Power  in  order  to 


152  APPENDIX  A 

obtain  the  indispensable  amount  of  money.  The 
6 'modus  operandi"  of  the  investment  of  the  neces- 
sary sums,  the  preferred-claim  nature  that  will 
be  given  to  the  required  moneys  advanced,  and  the 
further  details  and  conditions  of  the  expenditure 
of  the  money,  are  secondary  questions  which  can- 
not be  decided  until  the  Government  can  dispose 
of  the  sums  to  which  I  have  referred. 

For  the  foregoing  reasons,  the  Executive  of  the 
Union  asks  for  the  passage  of  the  following  DE- 
CREE by  the  General  Congress : 

DECREE 

SOLE  AETICLE :— The  Executive  of  the  Union 
is  authorised  to  charge  the  credit  of  the  State  up 
to  the  sum  of  50,000,000  pesos,  destined  to  the  re- 
pair of  track,  replacement  of  equipment  and  the 
reorganisation  of  the  services  of  the  National  Rail- 
ways of  Mexico  Company,  it  being  understood  that 
the  Executive  shall  submit  to  the  General  Con- 
gress in  advance  the  bases  of  the  contracts  he 
may  make  and  the  investment  of  the  loan  he  shall 
obtain. 

Mexico,  July  9,  1917. 

V.  CARRANZA    (Seal) 


APPENDIX  B 
THE   MEXICAN   CONSTITUTION   OF    1917 

TRANSLATED  BY 

H.  N.  BRANCH,  LL.B. 

WITH  A  FOREWORD 

BY 
L.  S.  ROWE,  PH.D.,  LL.D. 

Copyright,  1917,  by 

AMERICAN  ACADEMY  OF  POLITICAL  AND  SOCIAL  SCIENCE 
All  rights  reserved 

Here  reproduced  by  courtesy  of 

THE  AMERICAN  ACADEMY  OF  POLITICAL  AND  SOCIAL  SCIENCE 
PHILADELPHIA 


FOREWORD 

The  widespread  interest  in  Mexican  affairs  has 
led  the  Editorial  Council  of  the  Academy  to  ar- 
range for  the  early  publication  of  the  Mexican 
Constitution  adopted  at  the  recent  Constitutional 
Convention  held  in  Queretaro.  In  a  sense  this 
publication  supplements  the  special  volume  issued 
by  the  Academy  in  January  last  on  i '  The  Purposes 
and  Ideals  of  the  Mexican  Revolution." 

Since  the  first  movement  for  independence  from 
the  mother  country  in  1810,  Mexico  has  passed 
through  an  extraordinary  constitutional  develop- 
ment. The  idea  of  a  Republican  form  of  govern- 
ment made  its  way  but  slowly  amongst  the  found- 
ers of  Mexican  independence.  Between  1810  and 
1824  the  opinion  of  the  country  wavered  between 
a  constitutional  monarchy  and  a  republic.  It  is 
true  that  the  earliest  Mexican  Constitution — that 
adopted  in  Apatzingan  by  the  first  Constitutional 
Convention — provided  for  a  Republican  form  of 
government  with  an  Executive  composed  of  three 
persons  elected  by  the  National  Congress. 
Amongst  the  members  of  this  triumvirate,  a  sys- 
tem of  rotation  in  office  was  established  under 
which  each  exercised  the  powers  of  Chief  Execu- 
tive during  a  consecutive  period  of  four  months. 

155 


156  FOREWORD 

This  Constitution  was  regarded  as  provisional. 
As  soon  as  the  struggle  for  independence  was 
over,  the  leaders  planned  to  call  another  conven- 
tion for  the  purposes  of  effecting  the  final  organ- 
isation of  the  country.  During  the  period  between 
1815  and  1857,  the  country  was  torn  by  internal 
strife  and  almost  every  conceivable  form  of  Con- 
stitutional systems  was  tried,  ranging  from  a  re- 
publican triumvirate  to  the  imperial  system  of 
Iturbide. 

The  development  of  Federalism  in  Mexico 
stands  in  marked  contrast  with  the  political  evolu- 
tion of  the  United  States.  In  Mexico,  Federalism 
meant  the  sub-division  of  what  had  been,  under 
Spanish  rule,  a  centralised,  unified  system;  in  the 
United  States,  the  establishment  of  a  federal  sys- 
tem signified  a  closer  union  between  separated 
political  units.  In  spite  of  the  adoption  of  a  fed- 
eral system  by  Mexico  in  1857,  the  highly  central- 
ised traditions  of  Spanish  rule  perpetuated  them- 
selves and  finally  resulted,  under  the  Diaz  admin- 
istration, in  the  complete  subordination  of  the 
individual  states  to  the  national  government. 

The  leaders  of  the  revolutionary  movement 
against  the  Diaz  regime  were  convinced  that  the 
Constitution  of  1857  had  been  used  by  self-seeking 
politicians  for  personal  ends  and  that  its  pro- 
visions had  contributed  toward  the  domination  of 
the  country  by  a  self -constituted  oligarchy.  It  is 
not  surprising,  therefore,  to  find  radical  changes 
in  the  Constitution  of  1917.  The  revolutionary 


FOREWORD  157 

leaders,  headed  by  Venustiano  Carranza,  hold  that 
the  avowed  purposes  of  the  revolutionary  move- 
ment, namely  to  secure  for  the  masses  of  the  Mex- 
ican people  better  economic  and  social  conditions, 
must  be  incorporated  into  the  organic  law  and  it 
is  their  hope  that  thereby  the  country  will  be  pro- 
tected against  a  possible  reactionary  movement. 
To  what  extent  these  hopes  will  be  realised,  the 
future  alone  can  determine. 

The  Academy  is  under  obligation  to  Mr.  H.  N. 
Branch  for  his  admirable  translation  of  the  Con- 
stitution of  1917. 

L.  S.  BOWE. 
University  of  Pennsylvania 

May,  1917. 


TITLE! 
CHAPTER  I 

Of  Personal  Guarantees 

Article  1.  Every  person  in  the  United  States  of 
Mexico  shall  enjoy  all  guarantees  granted  by  this 
Constitution;  these  shall  neither  be  abridged  nor 
suspended  except  in  such  cases  and  under  such 
conditions  as  are  herein  provided.  (See  Art.  29.) 

Art.  2.  Slavery  is  forbidden  in  the  United 
States  of  Mexico.  Slaves  who  enter  the  national 
territory  shall,  by  this  act  alone,  recover  their 
freedom,  and  enjoy  the  protection  of  the  law. 

Art.  3.  Instruction  is  free ;  that  given  in  public 
institutions  of  learning  shall  be  secular.  Primary 
instruction,  whether  higher  or  lower,  given  in  pri- 
vate institutions  shall  likewise  be  secular. 

No  religious  corporation  nor  minister  of  any  re- 
ligious creed  shall  establish  or  direct  schools  of 
primary  instruction. 

Private  primary  schools  may  be  established  only 
subject  to  official  supervision. 

Primary  instruction  in  public  institutions  shall 
be  gratuitous. 

159 


160  APPENDIX  B 

Art.  4.  No  person  shall  be  prevented  from  en- 
gaging in  any  profession,  industrial  or  commercial 
pursuit  or  occupation  of  his  liking,  provided  it  be 
lawful.  The  exercise  of  this  liberty  shall  only  be 
forbidden  by  judicial  order  when  the  rights  of 
third  persons  are  infringed,  or  by  executive  order, 
issued  under  the  conditions  prescribed  by  law, 
when  the  rights  of  society  are  violated.  No  one 
shall  be  deprived  of  the  fruit  of  his  labor  except 
by  judicial  decree. 

Each  State  shall  determine  by  law  what  profes- 
sions shall  require  licenses,  the  requisites  to  be 
complied  with  in  obtaining  the  same,  and  the 
authorities  empowered  to  issue  them. 

Art.  5.  No  one  shall  be  compelled  to  render 
personal  services  without  due  compensation  and 
without  his  full  consent,  excepting  labor  imposed 
as  a  penalty  by  judicial  decree,  which  shall  con- 
form to  the  provisions  of  clauses  I  and  II  of 
Article  123. 

Only  the  following  public  services  shall  be  ob- 
ligatory, subject  to  the  conditions  set  forth  in  the 
respective  laws:  military  service,  jury  service, 
service  in  municipal  and  other  public  elective  office, 
whether  this  election  be  direct  or  indirect,  and 
service  in  connection  with  elections,  which  shall  be 
obligatory  and  without  compensation. 

The  State  shall  not  permit  any  contract,  cov- 
enant or  agreement  to  be  carried  out  having  for 
its  object  the  abridgment,  loss  or  irrevocable  sacri- 


APPENDIX  B  161 

fice  of  the  liberty  of  man,  whether  by  reason  of 
labor,  education  or  religious  vows.  The  law, 
therefore,  does  not  permit  the  establishment  of 
monastic  orders,  of  whatever  denomination,  or  for 
whatever  purpose  contemplated. 

Nor  shall  any  person  legally  agree  to  his  own 
proscription  or  exile,  or  to  the  temporary  or  per- 
manent renunciation  of  the  exercise  of  any  pro- 
fession or  industrial  or  commercial  pursuit. 

A  contract  for  labor  shall  only  be  binding  to 
render  the  services  agreed  upon  for  the  time  fixed 
by  law  and  shall  not  exceed  one  year  to  the  preju- 
dice of  the  party  rendering  the  service;  nor  shall 
it  in  any  case  whatsoever  embrace  the  waiver,  loss 
or  abridgment  of  any  political  or  civil  right. 

In  the  event  of  a  breach  of  such  contract  on  the 
part  of  the  party  pledging  himself  to  render  the 
service,  the  said  party  shall  only  be  liable  civilly 
for  damages  arising  from  such  breach,  and  in  no 
event  shall  coercion  against  his  person  be  em- 
ployed. 

Art.  6.  The  expression  of  ideas  shall  not  be  the 
subject  of  any  judicial  or  executive  investigation, 
unless  it  offend  good  morals,  impair  the  rights  of 
third  parties,  incite  to  crime  or  cause  a  breach  of 
the  peace. 

Art.  7.  Freedom  of  writing  and  publishing  writ- 
ings on  any  subject  is  inviolable.  No  law  or  au- 
thority shall  have  the  right  to  establish  censorship, 


162  APPENDIX  B 

require  bond  from  authors  or  printers,  nor  restrict 
the  liberty  of  the  press,  which  shall  be  limited  only 
by  the  respect  due  to  private  life,  morals  and  pub- 
lic peace.  Under  no  circumstances  shall  a  printing 
press  be  sequestrated  as  the  corpus  delicti. 

The  organic  laws  shall  prescribe  whatever  pro- 
visions may  be  necessary  to  prevent  the  imprison- 
ment, under  pretext  of  a  denunciation  of  offenses 
of  the  press,  of  the  vendors,  newsboys,  workmen 
and  other  employees  of  the  establishment  publish- 
ing the  writing  denounced,  unless  their  responsi- 
bility be  previously  established. 

Art.  8.  Public  officials  and  employees  shall  re- 
spect the  exercise  of  the  right  of  petition,  pro- 
vided it  be  in  writing  and  in  a  peaceful  and  re- 
spectful manner;  but  this  right  may  be  exercised 
in  political  matters  solely  by  citizens. 

To  every  petition  there  shall  be  given  an  answer 
in  writing  by  the  official  to  whom  it  may  be  ad- 
dressed, and  the  said  official  shall  be  bound  to  in- 
form the  petitioner  of  the  decision  taken  within  a 
brief  period. 

Art.  9.  The  right  peaceably  to  assemble  or  to 
come  together  for  any  lawful  purpose  shall  not  be 
abridged;  but  only  citizens  shall  be  permitted  to 
exercise  this  right  for  the  purpose  of  taking  part 
in  the  political  affairs  of  the  country.  No  armed 
assembly  shall  have  the  right  to  deliberate. 

No  meeting  or  assembly  shall  be  deemed  unlaw- 


en  *.  co  N>  H» 

o  r 


APPENDIX  B  163 

ful,  nor  may  it  be  dissolved,  which  shall  have  for 
its  purpose  the  petitioning  of  any  authority  or  the 
presentation  of  any  protest  against  any  act,  pro- 
vided no  insults  be  proffered  against  the  said  au- 
thority, nor  violence  resorted  to,  nor  threats  used 
to  intimidate  or  to  compel  the  said  authority  to 
render  a  favorable  decision. 


Art.  10.  The  inhabitants  of  the  United  States 
of  Mexico  are  entitled  to  have  arms  of  any  kind 
in  their  possession  for  their  protection  and  legiti- 
mate defense,  excepting  such  as  are  expressly  pro- 
hibited by  law  and  such  as  the  nation  may  reserve 
for  the  exclusive  use  of  the  army,  navy  and  na- 
tional guard;  but  they  shall  not  bear  such  arms 
within  inhabited  places,  except  subject  to  the  police 
regulations  thereof. 

Art.  11.  Every  one  has  the  right  to  enter  and 
leave  the  Eepublic,  to  travel  through  its  territory 
and  change  his  residence  without  necessity  of  a 
letter  of  security,  passport,  safe  conduct  or  any 
other  similar  requirement.  The  exercise  of  this 
right  shall  be  subordinated  to  the  powers  of  the 
judiciary,  in  the  event  of  civil  or  criminal  respon- 
sibility, and  to  those  of  the  executive,  in  so  far  as 
relates  to  the  limitations  imposed  by  law  in  re- 
gard to  emigration,  immigration,  and  the  public 
health  of  the  country,  or  in  regard  to  undesirable 
foreigners  resident  in  the  country. 


164  APPENDIX  B 

Art.  12.  No  titles  of  nobility,  prerogatives  or 
hereditary  honors  shall  be  granted  in  the  United 
States  of  Mexico,  nor  shall  any  effect  be  given  to 
those  granted  by  other  countries. 

Art.  13.  No  one  shall  be  tried  according  to  pri- 
vate laws  or  by  special  tribunals.  No  person  or 
corporation  shall  have  privileges  nor  enjoy  emolu- 
ments which  are  not  in  compensation  for  public 
services  and  established  by  law.  Military  juris- 
diction shall  be  recognized  for  the  trial  of  criminal 
cases  having  direct  connection  with  military  disci- 
pline, but  the  military  tribunals  shall  in  no  case 
and  for  no  reason  extend  their  jurisdiction  over 
persons  not  belonging  to  the  army.  Whenever  a 
civilian  shall  be  implicated  in  any  military  crime 
or  offense,  the  cause  shall  be  heard  by  the  corre- 
sponding civil  authorities. 

Art.  14.  No  law  shall  be  given  retroactive  effect 
to  the  prejudice  of  any  person  whatsoever. 

No  person  shall  be  deprived  of  life,  liberty, 
property,  possessions  or  rights  without  due  proc- 
ess of  law  instituted  before  a  duly  created  court, 
in"  which  the  essential  elements  of  procedure  are 
observed  and  in  accordance  with  previously  exist- 
ing laws. 

In  criminal  cases  no  penalty  shall  be  imposed 
by  mere  analogy  or  even  by  a  priori  evidence,  but 
the  penalty  shall  be  decreed  by  a  law  in  every 
respect  applicable  to  the  crime  in  question. 


APPENDIX  B  165 

In  civil  suits  the  final  judgment  shall  be  accord- 
ing to  the  letter  or  the  juridical  interpretation  of 
the  law;  in  the  absence  of  the  latter,  the  general 
legal  principles  shall  govern. 

Art.  15.  No  treaty  shall  be  authorized  for  the 
extradition  of  political  offenders,  or  of  offenders 
of  the  common  class,  who  have  been  slaves  in  the 
country  where  the  offense  was  committed.  Nor 
shall  any  agreement  or  treaty  be  entered  into 
which  abridges  or  modifies  the  guarantees  and 
rights  which  this  constitution  grants  to  the  indi- 
vidual and  to  the  citizen. 

Art.  16.  No  one  shall  be  molested  in  his  person, 
family,  domicile,  papers  or  possessions,  except  by 
virtue  of  an  order  in  writing  of  the  competent 
authority  setting  forth  the  legal  ground  and  justi- 
fication for  the  action  taken.  No  order  of  arrest 
or  detention  shall  be  issued  against  any  person 
other  than  by  competent  judicial  authority,  nor 
unless  preceded  by  a  charge,  accusation  or  com- 
plaint for  a  specific  offense  punishable  by  im- 
prisonment, supported  by  an  affidavit  of  a  credible 
party  or  by  such  other  evidence  as  shall  make  the 
guilt  of  the  accused  probable ;  in  cases  in  flagrante 
delicto  any  person  may  arrest  the  offender  and  his 
accomplices,  placing  them  without  delay  at  the 
disposition  of  the  nearest  authorities.  Only  in 
urgent  cases  instituted  by  the  public  attorney 
without  previous  complaint  or  indictment  (see 
note  to  Art.  21)  and  when  there  is  no  judicial 


166  APPENDIX  B 

authority  available  may  the  administrative  au- 
thorities, on  their  strictest  accountability,  order 
the  detention  of  the  accused,  placing  him  at  the 
disposition  of  the  judicial  authorities.  Every 
search  warrant,  which  may  only  be  issued  by  the 
judicial  authority  and  which  must  be  in  writing, 
shall  specify  the  place  to  be  searched,  the  person 
or  persons  to  be  arrested  and  the  objects  sought, 
to  which  the  proceeding  shall  be  strictly  limited; 
at  the  conclusion  of  which,  a  detailed  written  state- 
ment shall  be  drawn  up  in  the  presence  of  two 
witnesses  proposed  by  the  occupant  of  the  place  to 
be  searched,  or,  in  his  absence  or  refusal,  by  the 
official  making  the  search. 

Administrative  officials  may  enter  private 
houses  solely  for  the  purpose  of  determining  that 
the  sanitary  and  police  regulations  have  been  com- 
plied with ;  they  may  likewise  demand  the  exhibi- 
tion of  books  and  documents  necessary  to  prove 
that  the  fiscal  regulations  have  been  obeyed,  sub- 
ject to  the  respective  laws  and  to  the  formalities 
prescribed  for  cases  of  search. 

Art.  17.  No  one  shall  be  imprisoned  for  debts 
of  a  purely  civil  character.  No  one  shall  take 
the  law  into  his  own  hands,  nor  resort  to  violence 
in  the  enforcement  of  his  rights.  The  courts  shall 
be  open  for  the  administration  of  justice  at  such 
times  and  under  such  conditions  as  the  law  may 
establish ;  their  services  shall  be  gratuitous  and  all 
judicial  costs  are  accordingly  prohibited. 


APPENDIX  B  167 

Art.  18.  Detention  shall  be  exercised  only  for 
offenses  meriting  corporal  punishment.  The  place 
of  detention  shall  be  different  and  completely  sep- 
arated from  that  set  apart  for  the  serving  of  sen- 
tences. 

The  Federal  and  State  Governments  shall  or- 
ganize in  their  respective  territories  the  penal 
system — penal  colonies  or  prisons — on  the  basis  of 
labor  as  a  means  of  regeneration.  (See  Art.  5 
and  Clauses  I  and  II  of  Art.  123.) 

Art.  19.  No  detention  shall  exceed  three  days 
except  for  reasons  specified  in  the  formal  order  of 
commitment,  which  shall  set  forth  the  offense 
charged,  the  substance  thereof,  the  time,  place  and 
circumstances  of  its  commission,  and  the  facts 
disclosed  in  the  preliminary  examination;  these 
facts  must  always  be  sufficient  to  establish  the 
corpus  delicti  and  the  probable  guilt  of  the  ac- 
cused. All  authorities  ordering  any  detention  or 
consenting  thereto,  as  well  as  all  agents,  subordi- 
nates, wardens  or  jailers  executing  the  same,  shall 
be  liable  for  any  breach  of  this  provision. 

The  trial  shall  take  place  only  for  the  offense  or 
offenses  set  forth  in  the  formal  order  of  commit- 
ment. If  it  shall  develop  in  the  course  of  trial 
that  another  offense  different  from  that  charged 
has  been  committed,  a  separate  accusation  must  be 
brought.  This,  however,  shall  not  prevent  the 
joinder  of  both  causes  of  action,  if  deemed  ad- 
visable. 


168  APPENDIX  B 

Any  maltreatment  during  apprehension  or  con- 
finement; any  molestation  inflicted  without  legal 
justification;  any  exaction  or  contribution  levied 
in  prison  are  abuses  which  the  law  shall  correct 
and  the  authorities  repress. 

Art.  20.  In  every  criminal  trial  the  accused 
shall  enjoy  the  following  guarantees : 

I.  He  shall  be  set  at  liberty  on  demand  and 
upon  giving  a  bond  up  to  ten  thousand  pesos,  ac- 
cording to  Ms  status  and  the  gravity  of  the  offense 
charged,  provided,  however,  that  the  said  offense 
shall  not  be  punishable  wTith  more  than  five  years' 
imprisonment ;  he  shall  be  set  at  liberty  without 
any  further  requisite  than  the  placing  of  the  stip- 
ulated sum  at  the  disposal  of  the  proper  authori- 
ties or  the  giving  of  an  adequate  mortgage  bond 
or  personal  security. 

II.  He  may  not  be  forced  to  be  a  witness 
against  himself;  wherefore  denial  of  access  or 
other  means  looking  towards  this  end  is  hereby 
strictly  prohibited. 

III.  He  shall  be  publicly  notified  within  forty- 
eight  hours  after  being  turned  over  to  the  judicial 
authorities  of  the  name  of  his  accuser  and  of  the 
nature  of  and  cause  for  the  accusation,  so  that  he 
may  be  familiar  with  the  offense  with  which  he  is 
charged,  may  reply  thereto  and  make  his  prelim- 
inary statement. 

IV.  He  shall  be  confronted  with  the  witnesses 
against  him,  who  shall  testify  in  his  presence  if 


APPENDIX  B  169 

they  are  to  be  found  in  the  place  where  the  trial 
is  being  held,  so  that  he  may  cross-examine  them 
in  his  defense. 

V.  All  witnesses  which  he  shall  offer  shall  be 
heard  in  his  defense,  as  well  as  all  evidence  re- 
ceived, for  which  he  shall  be  given  such  time  as 
the  law  may  prescribe;  he  shall  furthermore  be 
assisted  in  securing  the  presence  of  any  person  or 
persons  whose  testimony  he  may  request,  provided 
they  are  to  be  found  at  the  place  of  trial. 

VI.  He  shall  be  entitled  to  a  public  trial  by  a 
judge  or  jury  of  citizens  who  can  read  and  write 
and  are  also  citizens  of  the  place  and  district 
where  the  offense  shall  have  been  committed,  pro-i 
vided  the  penalty  for  such  offense  be  greater  than 
one  year's  imprisonment.     The  accused  shall  al- 
ways be  entitled  to  trial  by  jury  for  all  offenses 
committed  by  means  of  the  press  against  the  pub- 
lic peace  or  against  the  safety,  domestic  or  for- 
eign, of  the  Republic. 

VII.  He  shall  be  furnished  with  all  information 
of  record  needed  for  his  defense. 

VIII.  He  shall  be  tried  within  four  months,  if 
charged  with  an  offense  the  maximum  penalty  for 
which  does  not  exceed  two  years'  imprisonment, 
and  within  one  year,  if  the  maximum  penalty  be 
greater. 

IX.  He  shall  be  heard  in  his  own  defense,  either 
personally  or  by  counsel,  or  by  both,  as  he  may 
desire.     In  case  he  shall  have  no  one  to  defend 
him,  a  list  of  official  counsel  shall  be  submitted  to 


170  APPENDIX  B 

him  in  order  that  he  may  choose  one  or  more  to 
act  in  his  defense.  If  the  accused  shall  not  desire 
to  name  any  counsel  for  his  defense,  after  having 
been  called  upon  to  do  so  at  the  time  of  his  pre- 
liminary examination,  the  court  shall  appoint 
counsel  to  defend  him.  The  accused  may  name  his 
counsel  immediately  on  arrest  and  shall  be  en- 
titled to  have  him  present  at  every  stage  of  the 
trial;  but  he  shall  be  bound  to  make  him  appear 
as  often  as  required  by  the  court. 

X.  In  no  event  may  imprisonment  or  detention 
be  extended  through  failure  to  pay  counsel  fees 
or  through  any  other  pecuniary  charge,  by  virtue 
of  any  civil  liability  or  other  similar  cause.  Nor 
shall  detention  be  extended  beyond  the  time  set  by 
law  as  the  maximum  for  the  offense  charged. 

The  period  of  detention  shall  be  reckoned  as  a 
part  of  the  final  sentence. 

Art.  21.  The  imposition  of  all  penalties  is  an 
exclusive  attribute  of  the  judiciary.  The  prosecu- 
tion of  offenses  belongs  to  the  public  prosecutor 
and  to  the  judicial  police,  who  shall  be  under  the 
immediate  command  and  authority  of  the  public 
prosecutor.  The  punishment  of  violations  of 
municipal  and  police  regulations  belongs  to  the 
administrative  authorities,  and  shall  consist  only 
of  a  fine  or  of  imprisonment  not  exceeding  thirty- 
six  hours.  Should  the  offender  fail  to  pay  the  fine 
this  shall  be  substituted  by  the  corresponding  pe- 


APPENDIX  B  171 

riod  of  arrest,  which  shall  in  no  case  exceed  fifteen 
days. 

Should  the  offender  be  a  workman  or  unskilled 
laborer,  he  shall  not  be  punished  with  a  fine 
greater  than  the  amount  of  his  weekly  wage  or 
salary. 

Art.  22.  Punishments  by  mutilation  and  in- 
famy, by  branding,  flogging,  beating  with  sticks, 
torture  of  any  kind,  excessive  fines,  confiscation  of 
property  and  any  other  penalties,  unusual  or 
working  corruption  of  the  blood,  are  prohibited. 

Attachment  proceedings  of  the  whole  or  part  of 
the  property  of  any  person  made  under  judicial 
authority  to  cover  any  civil  liability  arising  out  of 
the  commission  of  any  offense,  or  by  reason  of  the 
imposition  of  any  tax  or  fine,  shall  not  be  deemed 
a  confiscation  of  property. 

Art.  23.  Capital  punishment  is  likewise  for- 
bidden for  all  political  offenses ;  in  the  case  of  of- 
fenses other  than  political  it  shall  only  be  imposed 
for  high  treason  committed  during  a  foreign  war, 
parricide,  murder  with  malice  aforethought,  ar- 
son, adduction,  highway  robbery,  piracy,  and 
grave  military  offenses. 

Art.  24.  Every  one  is  free  to  embrace  the  re- 
ligion of  his  choice  and  to  practice  all  ceremonies, 
devotions  or  observances  of  his  respective  creed, 
either  in  places  of  public  worship  or  at  home,  pro- 


172  APPENDIX  B 

vided  they  do  not  constitute  an  offense  punishable 
by  law. 

Every  religious  act  of  public  worship  shall  be 
performed  strictly  within  the  places  of  public  wor- 
ship, which  shall  be  at  all  times  under  govern- 
mental supervision.  ( Drawn  largely  from  ' i  Leyes 
de  Reforma"  of  December  14,  1874.  See  note  to 
Art.  130.) 

Art.  25  Sealed  correspondence  sent  through  the 
mails  shall  be  free  from  search,  and  its  violation 
shall  be  punishable  by  law. 

Art.  26.  No  member  of  the  army  shall  in  time 
of  peace  be  quartered  in  private  dwellings,  with- 
out the  consent  of  the  owner ;  nor  shall  he  demand 
any  other  exaction.  In  time  of  war  the  military 
may  demand  lodging,  equipment,  provisions  and 
other  assistance,  in  the  manner  provided  by  the 
corresponding  martial  law. 

Art.  27.  The  ownership  of  lands  and  waters 
comprised  within  the  limits  of  the  national  terri- 
tory is  vested  originally  in  the  Nation,  which  has 
had,  and  has,  the  right  to  transmit  title  thereof  to 
private  persons,  thereby  constituting  private 
property. 

Private  property  shall  not  be  expropriated  ex- 
cept for  reasons  of  public  utility  and  by  means  of 
indemnification. 

The  Nation  shall  have  at  all  times  the  right  to 


APPENDIX  B  173 

impose  on  private  property  such  limitations  as  the 
public  interest  may  demand  as  well  as  the  right  to 
regulate  the  development  of  natural  resources, 
which  are  susceptible  of  appropriation,  in  order 
to  conserve  them  and  equitably  to  distribute  the 
public  wealth.  For  this  purpose  necessary  meas- 
ures shall  be  taken  to  divide  large  landed  estates ; 
to  develop  small  landed  holdings ;  to  establish  new 
centers  of  rural  population  with  such  lands  and 
waters  as  may  be  indispensable  to  them;  to  en- 
courage agriculture  and  to  prevent  the  destruction 
of  natural  resources,  and  to  protect  property  from 
damage  detrimental  to  society.  Settlements,  ham- 
lets situated  on  private  property  and  communes 
which  lack  lands  or  water  or  do  not  possess  them 
in  sufficient  quantities  for  their  needs  shall  have 
the  right  to  be  provided  with  them  from  the  ad- 
joining properties,  always  having  due  regard  for 
small  landed  holdings.  Wherefore,  all  grants  of 
lands  made  up  to  the  present  time  under  the  de- 
cree of  January  6,  1915,  are  confirmed.  Private 
property  acquired  for  the  said  purposes  shall  be 
considered  as  taken  for  public  utility. 

In  the  Nation  is  vested  direct  ownership  of  all 
minerals  or  substances  which  in  veins,  layers, 
masses,  or  beds  constitute  deposits  whose  nature 
is  different  from  the  components  of  the  land,  such 
as  minerals  from  which  metals  and  metaloids  used 
for  industrial  purposes  are  extracted ;  beds  of  pre- 
cious stones,  rock  salt  and  salt  lakes  formed  di- 
rectly by  marine  waters,  products  derived  from 


174  APPENDIX  B 

the  decomposition  of  rocks,  when  their  exploitation 
requires  underground  work;  phosphates  which 
may  be  used  for  fertilizers;  solid  mineral  fuels; 
petroleum  and  all  hydrocarbons — solid,  liquid  or 
gaseous. 

In  the  Nation  is  likewise  vested  the  ownership 
of  the  waters  of  territorial  seas  to  the  extent  and 
in  the  terms  fixed  by  the  law  of  nations ;  those  of 
lakes  and  inlets  of  bays;  those  of  interior  lakes 
of  natural  formation  which  are  directly  connected 
with  flowing  waters ;  those  of  principal  rivers  or 
tributaries  from  the  points  at  which  there  is  a 
permanent  current  of  water  in  their  beds  to  their 
mouths,  whether  they  flow  to  the  sea  or  cross  two 
or  more  States;  those  of  intermittent  streams 
which  traverse  two  or  more  States  in  their  main 
body;  the  waters  of  rivers,  streams,  or  ravines, 
when  they  bound  the  national  territory  or  that  of 
the  States ;  waters  extracted  from  mines ;  and  the 
beds  and  banks  of  the  lakes  and  streams  herein- 
before mentioned,  to  the  extent  fixed  by  law.  Any 
other  stream  of  water  not  comprised  within  the 
foregoing  enumeration  shall  be  considered  as  an 
integral  part  of  the  private  property  through 
which  it  flows ;  but  the  development  of  the  waters 
when  they  pass  from  one  landed  property  to  an- 
other shall  be  considered  of  public  utility  and  shall 
be  subject  to  the  provisions  prescribed  by  the 
States. 

In  the  cases  to  which  the  two  foregoing  para- 
graphs refer,  the  ownership  of  the  Nation  is  in- 


APPENDIX  B  175 

alienable  and  may  not  be  lost  by  prescription; 
concessions  shall  be  granted  by  the  Federal  Gov- 
ernment to  private  parties  or  civil  or  commercial 
corporations  organized  under  the  laws  of  Mexico, 
only  on  condition  that  said  resources  be  regularly 
developed,  and  on  the  further  condition  that  the 
legal  provisions  be  observed. 

Legal  capacity  to  acquire  ownership  of  lands 
and  waters  of  the  nation  shall  be  governed  by  the 
following  provisions : 

I.  Only  Mexicans  by  birth  or  naturalization  and 
Mexican  companies  have  the  right  to  acquire  own- 
ership in  lands,  waters  and  their  appurtenances, 
or  to  obtain  concessions  to  develop  mines,  waters 
or  mineral  fuels  in  the  Republic  of  Mexico.  The 
Nation  may  grant  the  same  right  to  foreigners, 
provided  they  agree  before  the  Department  of 
Foreign  Affairs  to  be  considered  Mexicans  in  re- 
spect to  such  property,  and  accordingly  not  to  in- 
voke the  protection  of  their  Governments  in  re- 
spect to  the  same,  under  penalty,  in  case  of  breach, 
of  forfeiture  to  the  Nation  of  property  so  ac- 
quired. Within  a  zone  of  100  kilometers  from  the 
frontiers,  and  of  50  kilometers  from  the  sea  coast, 
no  foreigner  shall  under  any  conditions  acquire 
direct  ownership  ot  lands  and  waters. 

II.  The  religious  institutions  known  as  churches, 
irrespective  of  creed,  shall  in  no  case  have  legal 
capacity  to  acquire,  hold  or  administer  real  prop- 
erty or  loans  made  on  such  real  property;  all 
such  real  property  or  loans  as  may  be  at  present 


176  APPENDIX  B 

held  by  the  said  religious  institutions,  either  on 
their  own  behalf  or  through  third  parties,  shall 
vest  in  the  Nation,  and  any  one  shall  have  the 
right  to  denounce  property  so  held.  Presumptive 
proof  shall  be  sufficient  to  declare  the  denuncia- 
tion well-founded.  Places  of  public  worship  are 
the  property  of  the  Nation,  as  represented  by  the 
Federal  Government,  which  shall  determine  which 
of  them  may  continue  to  be  devoted  to  their  pres- 
ent purposes.  Episcopal  residences,  rectories, 
seminaries,  orphan  asylums  or  collegiate  estab- 
lishments of  religious  institutions,  convents  or  any 
other  buildings  built  or  designed  for  the  adminis- 
tration, propaganda,  or  teaching  of  the  tenets  of 
any  religious  creed  shall  forthwith  vest,  as  of  full 
right,  directly  in  the  Nation,  to  be  used  exclusively 
for  the  public  services  of  the  Federation  or  of  the 
States,  within  their  respective  jurisdictions.  All 
places  of  public  worship  which  shall  later  be 
erected  shall  be  the  property  of  the  Nation. 

III.  Public  and  private  charitable  institutions 
for  the  sick  and  needy,  for  scientific  research,  or 
for  the  diffusion  of  knowledge,  mutual  aid  so- 
cieties or  organizations  formed  for  any  other  law- 
ful purpose  shall  in  no  case  acquire,  hold  or  ad- 
minister loans  made  on  real  property,  unless  the 
mortgage  terms  do  not  exceed  ten  years.  In  no 
case  shall  institutions  of  this  character  be  under 
the  patronage,  direction,  administration,  charge 
or  supervision  of  religious  corporations  or  institu- 
tions, nor  of  ministers  of  any  religious  creed  or  of 


APPENDIX  B  177 

their  dependents,  even  though  either  the  former  or 
the  latter  shall  not  be  in  active  service. 

IV.  Commercial  stock  companies  shall  not  ac- 
quire, hold,  or  administer  rural  properties.    Com- 
panies of  this  nature  which  may  be  organized  to 
develop  any  manufacturing,  mining,  petroleum  or 
other  industry,  excepting  only  agricultural  indus- 
tries, may  acquire,  hold  or  administer  lands  only 
in  an  area  absolutely  necessary  for  their  establish- 
ments or  adequate  to  serve  the  purposes  indicated, 
which  the  Executive  of  the  Union  or  of  the  re- 
spective State  in  each  case  shall  determine. 

V.  Banks  duly  organized  under  the  laws  gov- 
erning institutions  of  credit  may  make  mortgage 
loans  on  rural  and  urban  property  in  accordance 
with  the  provisions  of  the  said  laws,  but  they  may 
not  own  nor  administer  more  real  property  than 
that  absolutely  necessary  for  their  direct  pur- 
poses ;  and  they  may  furthermore  hold  temporarily 
for  the  brief  term  fixed  by  law  such  real  property 
as  may  be  judicially  adjudicated  to  them  in  execu- 
tion proceedings. 

VI.  Properties  held  in  common  by  co-owners, 
hamlets   situated  on  private  property,   pueblos, 
tribal  congregations  and  other  settlements  which, 
as  a  matter  of  fact  or  law,  conserve  their  com- 
munal character,  shall  have  legal  capacity  to  en- 
joy in  common  the  waters,  woods  and  lands  be- 
longing to  them,  or  which  may  have  been  or  shall 
be  restored  to  them  according  to  the  law  of  Jan- 
uary 6,  1915,  until  such  time  as  the  manner  of 


178  APPENDIX  B 

making  the  division  of  the  lands  shall  be  deter- 
mined by  law. 

VII.  Excepting  the  corporations  to  which 
Clauses  III,  IV,  V  and  VI  hereof  refer,  no  other 
civil  corporation  may  hold  or  administer  on  its 
own  behalf  real  estate  or  mortgage  loans  derived 
therefrom,  with  the  single  exception  of  buildings 
designed  directly  and  immediately  for  the  pur- 
poses of  the  institution.  The  States,  the  Federal 
District  and  the  Territories,  as  well  as  the  munici- 
palities throughout  the  Eepublic,  shall  enjoy  full 
legal  capacity  to  acquire  and  hold  all  real  estate 
necessary  for  public  services. 

The  Federal  and  State  laws  shall  determine 
within  their  respective  jurisdictions  those  cases  in 
which  the  occupation  of  private  property  shall  be 
considered  of  public  utility;  and  in  accordance 
with  the  said  laws  the  administrative  authorities 
shall  make  the  corresponding  declaration.  The 
amount  fixed  as  compensation  for  the  expropriated 
property  shall  be  based  on  the  sum  at  which  the 
said  property  shall  be  valued  for  fiscal  purposes 
in  the  catastral  or  revenue  offices,  whether  this 
value  be  that  manifested  by  the  owner  or  merely 
impliedly  accepted  by  reason  of  the  payment  oij 
his  taxes  on  such  a  basis,  to  which  there  shall  be 
added  10  per  cent.  The  increased  value  which  the 
property  in  question  may  have  acquired  through 
improvements  made  subsequent  to  the  date  of  the 
fixing  of  the  fiscal  value  shall  be  the  only  matter 
subject  to  expert  opinion  and  to  judicial  determi- 


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APPENDIX  B  179 

nation.  The  same  procedure  shall  be  observed  in 
respect  to  objects  whose  value  is  not  recorded  in 
the  revenue  offices. 

All  proceedings,  findings,  decisions  and  all  op- 
erations of  demarcation,  concession,  composition, 
judgment,  compromise,  alienation,  or  auction 
which  may  have  deprived  properties  held  in  com- 
mon by  co-owners,  hamlets  situated  on  private 
property,  settlements,  congregations,  tribes  and 
other  settlement  organizations  still  existing  since 
the  law  of  June  25, 1856,  of  the  whole  or  a  part  of 
their  lands,  woods  and  waters,  are  declared  null 
and  void ;  all  findings,  resolutions  and  operations 
which  may  subsequently  take  place  and  produce 
the  same  effects  shall  likewise  be  null  and  void. 
Consequently  all  lands,  forests  and  waters  of 
which  the  above-mentioned  settlements  may  have 
been  deprived  shall  be  restored  to  them  according 
to  the  decree  of  January  6,  1915,  which  shall  re- 
main in  force  as  a  constitutional  law.  In  case  the 
adjudication  of  lands,  by  way  of  restitution,  be 
not  legal  in  the  terms  of  the  said  decree,  which 
adjudication  have  been  requested  by  any  of  the 
above  entities,  those  lands  shall  nevertheless  be 
given  to  them  by  way  of  grant,  and  they  shall  in 
no  event  fail  to  receive  such  as  they  may  need. 
Only  such  lands,  title  to  which  may  have  been  ac- 
quired in  the  divisions  made  by  virtue  of  the  said 
law  of  June  25,  1856,  or  such  as  may  be  held  in 
undisputed  ownership  for  more  than  ten  years 
are  excepted  from  the  provision  of  nullity,  pro- 


180  APPENDIX  B 

vided  their  area  does  not  exceed  fifty  hectares. 
(1  hectare  =  2.47  acres.)  Any  excess  over  this 
area  shall  be  returned  to  the  commune  and  the 
owner  shall  be  indemnified.  All  laws  of  restitu- 
tion enacted  by  virtue  of  this  provision  shall  be 
immediately  carried  into  effect  by  the  administra- 
tive authorities.  Only  members  of  the  commune 
shall  have  the  right  to  the  lands  destined  to  be 
divided,  and  the  rights  to  these  lands  shall  be  in- 
alienable so  long  as  they  remain  undivided;  the 
same  provision  shall  govern  the  right  of  owner- 
ship after  the  division  has  been  made.  The  exer- 
cise of  the  rights  pertaining  to  the  Nation  by  vir- 
tue of  this  article  shall  follow  judicial  process; 
but  as  a  part  of  this  process  and  by  order  of  the 
proper  tribunals,  which  order  shall  be  issued 
within  the  maximum  period  of  one  month,  the  ad- 
ministrative authorities  shall  proceed  without 
delay  to  the  occupation,  administration,  auction, 
or  sale  of  the  lands  and  waters  in  question,  to- 
gether with  all  their  appurtenances,  and  in  no  case 
may  the  acts  of  the  said  authorities  be  set  aside 
until  final  sentence  is  handed  down. 
-  During  the  next  constitutional  term,  the  Con- 
gress and  the  State  Legislatures  shall  enact  laws, 
within  their  respective  jurisdictions,  for  the  pur- 
pose of  carrying  out  the  division  of  large  landed 
estates,  subject  to  the  following  conditions : 

(a)  In  each  State  and  Territory  there  shall  be 
fixed  the  maximum  area  of  land  which  any  one 


APPENDIX  B  181 

individual  or  legally  organized  corporation  may 
own. 

(b)  The  excess  of  the  area  thus  fixed  shall  be 
subdivided  by  the  owner  within  the  period  set  by 
the  laws  of  the  respective  locality;  and  these  sub- 
divisions shall  be  offered  for  sale  on  such  condi- 
tions as  the  respective  governments  shall  approve, 
in  accordance  with  the  said  laws. 

(c)  If  the  owner  shall  refuse  to  make  the  sub- 
division, this  shall  be  carried  out  by  the  local  gov- 
ernment, by  means  of  expropriation  proceedings. 

(d)  The  value  of  the  subdivisions  shall  be  paid 
in  annual  amounts  sufficient  to  amortize  the  prin- 
cipal and  interest  within  a  period  of  not  less  than 
twenty  years,  during  which  the  person  acquiring 
them  may  not  alienate  them.    The  rate  of  interest 
shall  not  exceed  5  per  cent  per  annum. 

(e)  The  owner  shall  be  bound  to  receive  bonds 
of  a  special  issue  to  guarantee  the  payment  of  the 
property  expropriated.    With  this  end  in  view,  the 
Congress  shall  issue  a  law  authorizing  the  States 
to  issue  bonds  to  meet  their  agrarian  obligations. 

(f)  The  local  laws  shall  govern  the  extent  of 
the  family  patrimony,  and  determine  what  prop- 
erty shall  constitute  the  same  on  the  basis  of  its 
inalienability ;  it  shall  not  be  subject  to  attachment 
nor  to  any  charge  whatever. 

All  contracts  and  concessions  made  by  former  N 
governments  from  and  after  the  year  1876  which 
shall  have  resulted  in  the  monopoly  of  lands, 
waters  and  natural  resources  of  the  Nation  by  a 


182  APPENDIX  B 

single  individual  or  corporation,  are  declared  sub- 
ject to  revision,  and  the  Executive  is  authorised  to 
declare  those  null  and  void  which  seriously  preju- 
v  dice  the  public  interest. 

}s 

Art.  28.  There  shall  be  no  private  nor  govern- 
mental monopolies  of  any  kind  whatsoever  in  the 
United  States  of  Mexico ;  nor  exemption  from  tax- 
ation; nor  any  prohibition  even  under  cover  of 
protection  to  industry,  excepting  only  those  relat- 
ing to  the  coinage  of  money,  to  the  postal,  tele- 
graphic, and  radio-telegraphic  services,  to  the  is- 
suance of  bills  by  a  single  banking  institution  to 
be  controlled  by  the  Federal  Government,  and  to 
the  privileges  which  for  a  limited  period  the  law 
may  concede  to  authors  and  artists  for  the  repro- 
duction of  their  work ;  and  lastly,  to  those  granted 
inventors  or  improvers  of  inventions  for  the  ex- 
clusive use  of  their  inventions. 

The  law  will  accordingly  severely  punish  and 
the  authorities  diligently  prosecute  any  accumulat- 
ing or  cornering  by  one  or  more  persons  of  neces- 
saries for  the  purpose  of  bringing  about  a  rise  in 
price ;  any  act  or  measure  which  shall  stifle  or  en- 
deavor to  stifle  free  competition  in  any  produc- 
tion, industry,  trade  or  public  service;  any  agree- 
ment or  combination  of  any  kind  entered  into  by 
producers,  manufacturers,  merchants,  common 
carriers  or  other  public  or  quasi-public  service,  to 
stifle  competition  and  to  compel  the  consumer  to 
pay  exorbitant  prices;  and  in  general  whatever 


APPENDIX  B  183 

constitutes  an  unfair  and  exclusive  advantage  in 
favor  of  one  or  more  specified  person  or  persons 
to  the  detriment  of  the  public  in  general  or  of  any 
special  class  of  society. 

Associations  of  labor  organized  to  protect  their 
own  interests  shall  not  be  deemed  a  monopoly. 
Nor  shall  cooperative  associations  or  unions  of 
producers  be  deemed  monopolies  when,  in  defense 
of  their  own  interests  or  of  the  general  public, 
they  sell  directly  in  foreign  markets  national  or 
industrial  products  which  are  the  principal  source 
of  wealth  of  the  region  in  which  they  are  produced, 
provided  they  be  not  necessaries,  and  provided 
further  that  such  associations  be  under  the  super- 
vision or  protection  of  the  Federal  Government  or 
of  that  of  the  States,  and  provided  further  that 
authorization  be  in  each  case  obtained  from  the 
respective  legislative  bodies.  These  legislative 
bodies  may,  either  on  their  own  initiative  or  on 
the  recommendation  of  the  Executive,  revoke, 
whenever  the  public  interest  shall  so  demand,  the 
authorization  granted  for  the  establishment  of  the 
associations  in  question. 

Art.  29.  In  cases  of  invasion,  grave  disturbance 
of  the  public  peace,  or  any  other  emergency  which 
may  place  society  in  grave  danger  or  conflict,  the 
President  of  the  Republic  of  Mexico,  and  no  one 
else,  with  the  concurrence  of  the  council  of  minis- 
ters, and  with  the  approval  of  the  Congress,  or  if 
the  latter  shall  be  in  recess,  of  the  Permanent 


184  APPENDIX  B 

Committee,  shall  have  power  to  suspend  through- 
out the  whole  Eepublic  or  in  any  portion  thereof, 
such  guarantees  as  shall  be  a  hindrance  in  meet- 
ing the  situation  promptly  and  readily;  but  such 
suspension  shall  in  no  case  be  confined  to  a  par- 
ticular individual,  but  shall  be  made  by  means  of 
a  general  decree  and  only  for  a  limited  period.  If 
the  suspension  occur  while  the  Congress  is  in  ses- 
sion, this  body  shall  grant  such  powers  as  in  its 
judgment  the  Executive  may  need  to  meet  the  sit- 
uation ;  if  the  suspension  occur  while  the  Congress 
is  in  recess,  the  Congress  shall  be  convoked  forth- 
with for  the  granting  of  sueh  powers. 

CHAPTER  II 

Of  Mexicans 

Art.  30.  Several  of  the  provisions  of  this  article 
follow  the  Naturalization  Law  of  May  28,  1886, 
while  others  are  a  radical  departure  in  the  ju- 
ridical theories  hitherto  accepted  in  Mexico.  A 
Mexican  shall  be  such  either  by  birth  or  by  nat- 
uralization. 

I.  Mexicans  by  birth  are  those  born  of  Mexican 
parents,  within  or  without  the  Eepublic,  provided 
in  the  latter  case  the  parents  be  also  Mexicans  by 
birth.  Persons  born  within  the  Eepublic  of  for- 
eign parentage  shall  likewise  be  considered  Mexi- 
cans by  birth,  who  within  one  year  after  they  come 
of  age  shall  declare  to  the  Department  of  Foreign 
Affairs  that  they  elect  Mexican  citizenship,  and 


APPENDIX  B  185 

who  shall  furthermore  prove  to  the  said  Depart- 
ment that  they  have  resided  within  the  country 
during  the  six  years  immediately  prior  to  the  said 
declaration. 
II.  Mexicans  by  naturalization  are : 

(a)  The  children  of  foreign  parentage  born  in 
the  country,  who  shall  elect  Mexican  citizenship  in 
the  manner  prescribed  in  the  foregoing  clause,  and 
in  whom  the  residence  qualification  required  in  the 
said  section  does  not  concur. 

(b)  Those  persons  who  shall  have  resided  in  the 
country  for  five  consecutive  years,  have  an  honest 
means  of  livelihood  and  shall  have  obtained  nat- 
uralization from  the  said  Department  of  Foreign 
Affairs. 

(c)  Those  of  mixed  Indian  and  Latin  descent 
who  may  have  established  residence  in  the  Repub- 
lic, and  shall  have  manifested  their  intention  to 
acquire  Mexican  citizenship. 

In  the  cases  stipulated  in  these  sections,  the  law 
shall  determine  the  manner  of  proving  the  req- 
uisites therein  demanded. 

Art.  31.    It  shall  be  the  duty  of  every  Mexican : 

I.  To  compel  the  attendance  at  either  private 
or  public  schools  of  their  children  or  wards,  when 
under  fifteen  years  of  age,  in  order  that  they  may 
receive  primary  instruction  and  military  training 
for  such  periods  as  the  law  of  public  instruction  in 
each  State  shall  determine. 

II.  To  attend  on  such  days  and  at  such  hours  as 


186  APPENDIX  B 

the  town  council  snail  in  each,  case  prescribe,  to 
receive  such  civic  instruction  and  military  training 
as  shall  fit  them  to  exercise  their  civic  rights,  shall 
make  them  skillful  in  the  handling  of  arms  and 
familiar  with  military  discipline. 

III.  To  enlist  and  serve  in  the  national  guard, 
pursuant  to  the  respective  organic  law  for  the 
purpose  of  preserving  and  defending  the  inde- 
pendence, territory,  honour,  rights  and  interests 
of  the  country,  as  well  as  domestic  peace  and 
order. 

IV.  To  contribute  in  the  proportional  and  equi- 
table manner  provided  by  law  toward  the  public 
expenses  of  the  Federation,  the  State  and  the 
municipality  in  which  he  resides. 

r~  Art.  32.  Mexicans  shall  be  preferred  under 
equal  circumstances  to  foreigners  for  all  kinds  of 
concessions  and  for  all  public  employments,  offices 
or  commissions,  when  citizenship  is  not  indispen- 
sable. No  foreigner  shall  serve  in  the  army  nor 
in  the  police  corps  nor  in  any  other  department  of 
public  safety  during  times  of  peace. 

Only  Mexicans  by  birth  may  belong  to  the  na- 
tional navy,  or  fill  any  office  or  commission  therein. 
The  same  requisite  shall  be  required  for  captains, 
pilots,  masters  and  chief  engineers  of  Mexican 
merchant  ships,  as  well  as  for  two-thirds  of  the 
members  of  the  crew. 


APPENDIX  B  187 

CHAPTER  III 

Of  Aliens 

Art.  33.  Aliens  are  those  who  do  not  possess 
the  qualifications  prescribed  by  Article  30.  They 
shall  be  entitled  to  the  guarantees  granted  by 
Chapter  I,  Title  I,  of  the  present  Constitution ;  but 
the  Executive  shall  have  the  exclusive  right  to  ex- 
pel from  the  Republic  forthwith,  and  without  judi- 
cial process,  any  foreigner  whose  presence  he  may 
deem  inexpedient. 

No  foreigner  shall  meddle  in  any  way  whatso- 
ever in  the  political  affairs  of  the  country. 

CHAPTER   IV 

Of  Mexican  Citizens 

Art.  34.  Mexican  citizenship  shall  be  enjoyed 
only  by  those  Mexicans  who  have  the  following 
qualifications : 

I.  Are  over  21  years  of  age,  if  unmarried,  and 
over  18,  if  married. 

II.  Have  an  honest  means  of  livelihood. 

Art.  35.    The  prerogatives  of  citizens  are : 

I.  To  vote  at  popular  elections 

II.  To  be  eligible  for  any  elective  office  and  be 
qualified  for  any  other  office  or  commission,  pro- 
vided they  have  the  other  qualifications  required 
by  law. 


188  APPENDIX  B 

III.  To  assemble  for  the  purpose  of  discussing 
the  political  affairs  of  the  country. 

IV.  To  serve  in  the  army  or  national  guard  for 
the  defense  of  the  Eepublic  and  its  institutions,  as 
by  law  determined. 

V.  To  exercise  the  right  of  petition  in  any  mat- 
ter whatever. 

Art.  36.    It  shall  be  the  duty  of  every  Mexican 
citizen : 

I.  To  register  in  the  polls  of  the  municipality, 
setting  forth  any  property  he  may  own  and  his 
professional  or  industrial  pursuit,  or  occupation; 
and  also  to  register  in  the  electoral  registration 
lists,  as  by  law  determined. 

II.  To  enlist  in  the  national  guard. 

III.  To  vote  at  popular  elections  in  the  electoral 
district  to  which  he  belongs. 

IV.  To  fill  the  elective  Federal  or  State  offices 
to  which  he  may  be  chosen,  which  service  shall  in 
no  case  be  gratuitous. 

V.  To  serve  on  the  town  council  of  the  munici- 
pality wherein  he  resides  and  to  perform  all  elec- 
toral and  jury  service. 

Art.  37.    Citizenship  shall  be  lost: 

I.  By  naturalization  in  a  foreign  country. 

II.  By  officially  serving  the  government  of  an- 
other country,  or  accepting  its  decorations,  titles 
or  employment  without  previous  permission  of  the 
Federal   Congress,   excepting  literary,   scientific 


APPENDIX  B  189 

and  humanitarian  titles  which  may  be  accepted 
freely. 

III.  By  compromising  themselves  in  any  way 
before  ministers  of  any  religious  creed  or  before 
any  other  person  not  to  observe  the  present  Con- 
stitution, or,  the  laws  arising  thereunder. 

Art.  38.  The  rights  or  prerogatives  of  citizen- 
ship shall  be  suspended  for  the  following  reasons : 

I.  Through  failure  to  comply,  without  sufficient 
cause,  with  any  of  the  obligations  imposed  by 
Article  36.    This  suspension  shall  last  for  one  year 
and  shall  be  in  addition  to  any  other  penalties 
prescribed  by  law  for  the  same  offense. 

II.  Through  being  subjected  to  criminal  prose- 
cution for  an  offense  punishable  with  imprison- 
ment, such  suspension  to  be  reckoned  from  the 
date  of  the  formal  order  of  commitment. 

III.  Throughout  the  term  of  imprisonment. 

IV.  Through  vagrancy  or  habitual  drunkenness, 
declared  in  the  manner  provided  by  law. 

V.  Through  being  a  fugitive  from  justice,  the 
suspension  to  be  reckoned  from  the  date  of  the 
order  of  arrest  until  the  prescription  of  the  crim- 
inal action. 

VI.  Through  any  final  sentence  which  shall  de- 
cree as  a  penalty  such  suspension. 

The  law  shall  determine  the  cases  in  which  civic 
rights  may  be  lost  or  suspended  and  the  manner  in 
which  they  may  be  regained. 


190  APPENDIX  B 


TITLE  II 

CHAPTER   I 

Of  the  National  Sovereignty  and  Form  of 
Government 

Art.  39.  The  national  sovereignty  is  vested  es- 
sentially and  originally  in  the  people.  All  public 
power  emanates  from  the  people,  and  is  instituted 
for  their  benefit.  The  people  have  at  all  times  the 
inalienable  right  to  alter  or  modify  the  form  of 
their  government. 

Art.  40.  It  is  the  will  of  the  Mexican  people  to 
constitute  themselves  into  a  democratic,  federal, 
representative  republic,  consisting  of  States,  free 
and  sovereign  in  all  that  concerns  their  internal 
affairs,  but  united  in  a  federation  according  to  the 
principles  of  this  fundamental  law. 

Art.  41.  The  people  exercise  their  sovereignty 
through  the  federal  powers  in  the  matters  belong- 
ing to  the  Union,  and  through  those  of  the  States 
in  the  matters  relating  to  the  internal  administra- 
tion of  the  latter.  This  power  shall  be  exercised 
in  the  manner  respectively  established  by  the  Con- 
stitutions, both  Federal  and  State.  The  constitu- 
tions of  the  States  shall  in  no  case  contravene  the 
stipulations  of  the  Federal  constitution. 


APPENDIX  B  191 


CHAPTER   II 

Of  the  Integral  Parts  of  the  Federation  and  the 
National  Territory 

Art.  42.  The  national  territory  comprises  the 
integral  parts  of  the  Federation  and  the  adjacent 
islands  in  both  oceans.  It  likewise  comprises  the 
Island  of  Guadalupe,  those  of  Revillagigedo,  and 
that  of  "La  Pasion,"  situated  in  the  Pacific  Ocean. 

Art.  43.  The  integral  parts  of  the  Federation 
are:  The  States  of  Aguascalientes,  Campeche, 
Coahuila,  Colima,  Chiapas,  Chihuahua,  Durango, 
Guanajuato,  Guerrero,  Hidalgo,  Jalisco,  Mexico, 
Michoacan,  Morelos,  Nayarit  (see  Art.  47),  Nuevo 
Leon,  Oaxaca,  Puebla,  Queretaro,  San  Luis  Potosi, 
Sinaloa,  Sonora,  Tabasco,  Tamaulipas,  Tlaxcala, 
Vera  Cruz,  Yucatan,  Zacatecas,  the  Federal  Dis- 
trict, the  Territory  of  Lower  California,  and  the 
Territory  of  Quintana  Koo. 

Art.  44.  The  Federal  District  shall  embrace  its 
present  territory;  in  the  event  of  the  removal  of 
the  Federal  Powers  to  some  other  place  it  shall  be 
created  into  the  State  of  the  Valley  of  Mexico, 
with  such  boundaries  and  area  as  the  Federal  Con- 
gress shall  assign  to  it. 

Art.  45.  The  States  and  Territories  of  the  Fed- 
eration shall  keep  their  present  boundaries  and 


192  APPENDIX  B 

areas,  provided  no  boundary  question  shall  exist 
between  them. 

Art.  46.  The  States  having  pending  boundary 
questions  shall  arrange  or  settle  them  as  provided 
by  this  Constitution. 

Art.  47.  The  State  of  Nayarit  shall  have  the 
territorial  area  and  boundaries  at  present  com- 
prising the  Territory  of  Tepic. 

Art.  48.  The  islands  in  both  oceans  embraced 
within  the  national  territory  shall  depend  directly 
on  the  Federal  Government,  excepting  those  over 
which  the  States  have  up  to  the  present  time  exer- 
cised jurisdiction. 

TITLE  HI 

CHAPTER  I 

Of  the  Division  of  Powers 

Art.  49.  The  supreme  power  of  the  Federation 
is  divided  for  its  exercise  into  legislative,  execu- 
tive and  judicial. 

Two  or  more  of  these  powers  shall  never  be 
united  in  one  person  or  corporation,  nor  shall  the 
legislative  power  be  vested  in  one  individual  ex- 
cept in  the  case  of  extraordinary  powers  granted 
to  the  Executives,  in  accordance  with  the  pro- 
visions of  Article  29. 


APPENDIX  B  193 

CHAPTER  II 

Of  the  Legislative  Power 

Art.  50.  The  legislative  power  of  the  United 
States  of  Mexico  is  vested  in  a  general  Congress 
which  shall  consist  of  a  House  of  Representatives 
and  a  Senate. 

SECTION   I 

Of  the  Election  and  Installation  of  the  Congress 

Art.  51.  The  House  of  Representatives  shall 
consist  of  representatives  of  the  Nation,  all  of 
whom  shall  be  elected  every  two  years  by  the 
citizens  of  Mexico. 

Art.  52.  One  Representative  shall  be  chosen  for 
each  60,000  inhabitants  or  for  any  fraction  thereof 
exceeding  20,000,  on  the  basis  of  the  general  census 
of  the  Federal  District  and  of  each  State  and 
Territory.  Any  State  or  Territory  in  which  the 
population  shall  be  less  than  that  fixed  by  this 
article  shall,  nevertheless,  elect  one  Representa- 
tive. 

Art.  53.  There  shall  be  elected  an  alternate  for 
each  Representative. 

Art.  54.  The  election  of  Representatives  shall  be 
direct,  in  accordance  with  the  provisions  of  the 
electoral  law. 


194  APPENDIX  B 

Art.  55.  Eepresentatives  shall  have  the  follow- 
ing qualifications : 

I.  They  shall  be  Mexican  citizens  by  birth  (see 
Art.  30)  and  in  the  enjoyment  of  their  rights. 

II.  They  shall  be  over  twenty-five  years  of  age 
on  the  day  of  election. 

III.  They  shall  be  natives  of  the  States  or  Ter- 
ritories respectively  electing  them,  or  domiciled 
and  actually  resident  therein  for  six  months  im- 
mediately prior  to  the  election.    The  domicile  shall 
not  be  lost  through  absence  in  the  discharge  of  any 
elective  office. 

IV.  They  shall  not  be  in  active  service  in  the 
Federal  army,  not  have  any  command  in  the  police 
corps  or  rural  constabulary  in  the  districts  where 
the  elections  respectively  take  place,  for  at  least 
ninety  days  immediately  prior  to  the  election. 

V.  They  shall  not  hold  the  office  of  secretary  nor 
assistant  secretary  of  any  executive  department 
nor  of  justice  of  the  supreme  court,  unless  they 
shall  have  resigned  therefrom  ninety  days  imme- 
diately prior  to  the  election. 

No  State  Governor,  Secretary  of  State  of  the 
several  States,  nor  State  Judge  shall  be  eligible  in 
the  Districts  within  their  several  jurisdictions,  un- 
less they  shall  have  resigned  from  their  office 
ninety  days  immediately  prior  to  the  day  of  elec- 
tion. 

VI.  They  shall  not  be  ministers  of  any  religious 
creed. 


APPENDIX  B  195 

Art.  56.  The  Senate  shall  consist  of  two  Sen- 
ators from  each  State  and  two  from  the  Federal 
District,  chosen  in  direct  election. 

Each  State  Legislature  shall  certify  to  the  elec- 
tion of  the  candidate  who  shall  have  obtained  a 
majority  of  the  total  number  of  votes  cast. 

Art.  57.  There  shall  be  elected  an  alternate  for 
each  Senator. 

Art.  58.  Each  Senator  shall  serve  four  years. 
The  Senate  shall  be  renewed  by  half  every  two 
years. 

Art.  59.  The  qualifications  necessary  to  be  a 
Senator  shall  be  the  same  as  those  necessary  to  be 
a  Eepresentative,  excepting  that  of  age,  which 
shall  be  over  thirty-five  on  the  day  of  election. 

Art.  60.  Each  House  shall  be  the  judge  of  the 
election  of  its  members  and  shall  decide  all  ques- 
tions arising  therefrom. 

Its  decisions  shall  be  final. 

Art.  61.  Eepresentatives  and  Senators  are  in- 
violable for  opinions  expressed  by  them  in  the  dis- 
charge of  their  duties,  and  shall  never  be  called  to 
account  for  them. 

Art.  62.  Kepresentatives  and  Senators  shall  be 
disqualified  during  the  terms  for  which  they  have 
been  elected  from  holding  any  Federal  or 


196  APPENDIX  B 

commission  or  office  for  which  any  emolument  is 
received  without  previous  permission  of  the  re- 
spective House;  in  the  event  of  their  accepting 
such  commission  or  office  they  shall  forthwith  lose 
their  representative  character  for  such  time  as 
they  shall  hold  such  appointive  office.  The  same 
provision  shall  apply  to  alternate  Representatives 
and  Senators,  when  in  active  service.  The  viola- 
tion of  this  provision  shall  be  punished  by  for- 
feiture of  the  office  of  Representative  or  Senator. 

Art.  63.  The  Houses  shall  not  open  their  ses- 
sions nor  exercise  their  functions  without  a 
quorum,  in  the  Senate  of  two-thirds,  and  in  the 
House  of  Representatives  of  a  majority  of  the 
total  membership;  but  the  members  present  of 
either  House  shall  meet  on  the  day  appointed  by 
law  and  compel  the  attendance  of  the  absentees 
within  the  next  thirty  days,  and  they  shall  warn 
them  that  failure  to  comply  with  this  provision 
shall  be  taken  to  be  a  refusal  of  office,  and  the 
corresponding  alternates  shall  be  summoned  forth- 
with ;  the  latter  shall  have  a  similar  period  within 
which  to  present  themselves,  and  on  their  failure 
to  do  so  the  seats  shall  be  declared  vacant  and  new 
elections  called. 

Representatives  or  Senators  who  shall  be  ab- 
sent during  ten  consecutive  days  without  proper 
cause  or  without  leave  of  the  President  of  the  re- 
spective House,  notice  of  which  shall  be  duly  com- 
municated to  the  House,  shall  be  understood  as 


APPENDIX  B  197 

waiving  their  right  to  attend  until  the  next  ses- 
sion, and  their  alternates  shall  be  summoned  with- 
out delay. 

If  there  shall  be  no  quorum  to  organise  either  of 
the  Houses  or  to  continue  their  labours,  once  or- 
ganised, the  alternates  shall  be  ordered  to  present 
themselves  as  soon  as  possible  for  the  purpose  of 
taking  office  until  the  expiration  of  the  thirty  days 
hereinbefore  mentioned. 

Art.  64.  No  Representative  or  Senator  who 
shall  fail  to  attend  any  daily  session  without 
proper  cause  or  without  previous  permission  of 
the  respective  House,  shall  be  entitled  to  the  com- 
pensation corresponding  to  the  day  on  which  he 
shall  have  been  absent. 

Art.  65.  The  Congress  shall  meet  on  the  first 
day  of  September  of  each  year  in  regular  session 
for  the  consideration  of  the  following  matters : 

I.  To  audit  the  accounts  of  the  previous  year 
which  shall  be  submitted  to  the  House  of  Repre- 
sentatives not  later  than  ten  days  after  the  open- 
ing of  the  session.  The  audit  shall  not  be  confined 
to  determining  whether  the  expenditures  do  or  do 
not  conform  with  the  respective  items  in  the 
Budget,  but  shall  comprise  an  examination  of  the 
exactness  of,  and  authorisation  for,  payments 
made  thereunder,  and  of  any  liability  arising  from 
such  payments. 

No  other  secret  items  shall  be  permitted  than 


198  APPENDIX  B 

those  which  the  Budget  may  consider  necessary  as 
such;  these  amounts  shall  be  paid  out  by  the  sec- 
retaries of  executive  departments  under  written 
orders  of  the  President. 

II.  To  examine,  discuss  and  approve  the  Budget 
for  the  next  fiscal  year,  and  to  lay  such  taxes  as 
may  be  needed  to  meet  the  expenditures. 

III.  To  study,  discuss  and  vote  on  all  bills  pre- 
sented and  to  discuss  all  other  matters  incumbent 
upon  the  Congress  by  virtue  of  this  Constitution. 

Art.  66.  The  regular  session  of  the  Congress 
shall  last  the  period  necessary  to  deal  with  all  of 
the  matters  mentioned  in  the  foregoing  article,  but 
it  may  not  be  extended  beyond  the  thirty-first  day 
of  December  of  the  same  year.  Should  both 
Houses  fail  to  agree  as  to  adjournment  prior  to 
the  above  date,  the  matter  shall  be  decided  by  the 
Executive. 

Art.  67.  The  Congress  shall  meet  in  extraordi- 
nary session  whenever  so  summoned  by  the  Presi- 
dent, but  in  such  event  it  shall  consider  only  the 
matter  or  matters  submitted  to  it  by  the  President, 
who  shall  enumerate  it  or  them  in  the  respective 
call.  The  President  shall  have  power  to  convene 
in  extraordinary  session  only  one  of  the  Houses 
when  the  matter  to  be  referred  to  it  pertains  to  its 
exclusive  jurisdiction. 

Art.  68.  Both  Houses  shall  hold  their  meetings 
in  the  same  place  and  shall  not  move  to  another 


APPENDIX  B  199 

without  having  first  agreed  upon  the  moving  and 
the  time  and  manner  of  accomplishing  it,  as  well 
as  upon  the  place  of  meeting,  which  shall  be  the 
same  for  both  Houses.  If  both  Houses  agree  to 
change  their  meeting  place  but  disagree  as  to  the 
time,  manner  and  place  the  President  shall  settle 
the  question  by  choosing  one  of  the  two  proposals. 
Neither  House  may  suspend  its  sessions  for  more 
than  three  days  without  the  consent  of  the  other. 

Art.  69.  The  President  of  the  Eepublic  shall 
attend  at  the  opening  of  the  sessions  of  the  Con- 
gress, whether  regular  or  extraordinary,  and  shall 
submit  a  report  in  writing;  this  report  shall,  in  the 
former  case,  relate  to  the  general  state  of  the 
Union;  and  in  the  latter,  it  shall  explain  to  the 
Congress  or  to  the  House  addressed  the  reasons 
or  causes  which  rendered  the  call  necessary  and 
the  matters  requiring  immediate  attention. 

Art.  70.  Every  measure  of  the  Congress  shall 
be  in  the  form  of  a  law  or  decree.  The  laws  or 
decrees  shall  be  communicated  to  the  Executive 
after  having  been  signed  by  the  Presidents  of  both 
Houses  and  by  one  of  the  secretaries  of  each. 
When  promulgated,  the  enacting  clause  shall  read 
as  follows : 

"The  Congress  of  the  United  States  of  Mexico 
decrees  (text  of  the  law  or  decree )." 


200  APPENDIX  B 

SECTION   II 

Of  the  Origin  and  Formation  of  the  Laws 

Art.  71.  The  right  to  originate  legislation  per- 
tains : 

I.  To  the  President  of  the  Republic; 

II.  To  the  Representatives  and  Senators  of  the 
Congress ; 

III.  To  the  State  Legislatures. 

Bills  submitted  by  the  President  of  the  Republic, 
by  State  Legislatures  or  by  delegations  of  the 
States  shall  be  at  once  referred  to  committee. 
Those  introduced  by  Representatives  or  Senators 
shall  be  subject  to  the  rules  of  procedure. 

Art,  72.  Bills,  action  on  which  shall  not  pertain 
exclusively  to  one  of  the  Houses,  shall  be  discussed 
first  by  one  and  then  by  the  other,  according  to  the 
rules  of  procedure  as  to  the  form,  time  of  pres- 
entation and  other  details  relative  to  discussions 
and  votes. 

(a)  After  a  bill  has  been  approved  in  the  House 
where  it  originated  it  shall  be  sent  to  the  other 
House  for  consideration.    If  passed  by  the  latter 
it  shall  be  transmitted  to  the  President  who,  if  he 
has  no  observations  to  make  thereto,  shall  imme- 
diately promulgate  it. 

(b)  Bills  not  returned  by  the  Executive  within 
ten  working  days  with  his  observations  to  the 
House  in  which  they  originated,  shall  be  consid- 


APPENDIX  B  201 

ered  approved,  unless  during  the  said  ten  days 
the  Congress  shall  have  adjourned  or  suspended 
its  sessions,  in  which  event  they  shall  be  returned 
on  the  first  working  day  after  the  Congress  shall 
have  reconvened. 

(c)  Bills  rejected  in  whole  or  in  part  by  the 
Executive  shall  be  returned  with  his  observations 
to  the  House  where  they  originated.    They  shall 
be  discussed  anew  by  this  House  and  if  confirmed 
by  a  two-thirds  majority  vote  of  the  total  mem- 
bership shall  be  sent  to  the  other  House  for  re- 
consideration.    If  approved  by  it,  also  by  the 
same  majority  vote,  the  bill  shall  become  law  and 
shall  be  returned  to  the  Executive  for  promulga- 
tion. 

The  voting  in  both  Houses  shall  be  by  yeas  and 
nays. 

(d)  Bills  totally  rejected  by  the  House  not  orig- 
inating them  shall  be  returned  with  the  proper 
observations  to  the  House  of  origin.    If  examined 
anew  and  approved  by  a  majority  of  the  mem- 
bers present,  they  shall  be  returned  to  the  House 
rejecting  them,  which  shall  once  again  take  them 
under  consideration,  and  if  approved  by  it,  like- 
wise by  the  same  majority  vote,  they  shall  be  sent 
to  the  Executive  for  the  purposes  of  Clause  A; 
but  if  the  said  House  fail  to  approve  them,  they 
shall  not  be  reintroduced  in  the  same  session. 

(e)  Bills    rejected    in    part    or    modified    or 
amended  by  the  House  of  revision  shall  be  dis- 
cussed anew  in  the  House  of  origin,  but  the  dis- 


202  APPENDIX  B 

cussion  shall  be  confined  to  the  portion  rejected 
or  to  the  amendments  or  additions,  without  the 
approved  articles  being  altered  in  any  respect.  If 
the  additions  or  amendments  made  by  the  House 
of  revision  be  approved  by  a  majority  vote  of  the 
members  present  in  the  House  of  origin,  the  bill 
shall  be  transmitted  to  the  Executive  for  the  pur- 
poses of  Clause  A ;  but  if  the  amendments  or  ad- 
ditions by  the  House  of  revision  be  rejected  by  a 
majority  vote  of  the  House  of  origin  they  shall 
be  returned  to  the  former  House  in  order  that  the 
reasons  set  forth  by  the  latter  may  be  taken  into 
consideration.  If  in  this  second  revision  the  said 
additions  or  amendments  be  rejected  by  a  major- 
ity vote  of  the  members  present  the  portion  of  the 
bill  which  has  been  approved  by  both  Houses  shall 
be  sent  to  the  Executive  for  the  purposes  of  Clause 
A.  If  the  House  of  revision  insist  by  a  majority 
vote  of  the  members  present  upon  the  additions 
or  amendments,  no  action  shall  be  taken  on  the 
whole  bill  until  the  next  session,  unless  both 
Houses  agree,  by  a  majority  vote  of  the  members 
present,  to  the  promulgation  of  the  law  without 
the  articles  objected  to,  which  shall  be  left  till  the 
next  session,  when  they  shall  be  then  discussed 
and  voted  upon. 

(f)  The  same  formalities  as  are  required  for 
the  enactment  of  laws  shall  be  observed  for  their 
interpretation,  amendment  or  repeal. 

(g)  No  bill  rejected  in  the  House  of  origin  be- 


APPENDIX  B  203 

fore  passing  to  the  other  House  shall  be  reintro- 
duced  during  the  session  of  that  year. 

(h)  Legislative  measures  may  be  originated  in 
either  House,  excepting  bills  dealing  with  loans, 
taxes  or  imposts,  or  with  the  raising  of  troops, 
which  must  have  their  origin  in  the  House  of 
Kepresentatives. 

(i)  Whenever  a  bill  shall  be  presented  to  one 
House  it  shall  be  first  discussed  there  unless  one 
month  shall  have  elapsed  since  it  was  referred  to 
committee  and  not  reported,  in  which  event  an 
identical  bill  may  be  presented  and  discussed  in 
the  other  House. 

(j)  The  President  shall  not  make  any  observa- 
tions touching  the  resolutions  of  the  Congress  or 
of  either  House  when  acting  as  an  electoral  body 
or  as  a  grand  jury,  nor  when  the  House  of  Repre- 
sentatives shall  declare  that  there  are  grounds  to 
impeach  any  high  federal  authority  for  official 
offences. 

Nor  shall  he  make  any  observations  touching 
the  order  for  a  call  issued  by  the  Permanent 
Committee  as  provided  in  Article  84. 


SECTION  in 
Of  the  Powers  of  the  Congress 

Art.  73.    The  Congress  shall  have  power : 
I.  To  admit  new  States  or  Territories  into  the 
Federal  Union. 


204  APPENDIX  B 

II.  To  grant  statehood  to  Territories  which 
have  a  population  of  eighty  thousand  inhabitants 
and  the  necessary  means  to  provide  for  their 
political  existence. 

III.  To  form  new  States  within  the  boundaries 
of  existing  ones,  provided  the  following  requisites 
are  complied  with : 

1.  That  the  section  or  sections  aspiring  to 
statehood  have  a  population  of  one  hundred  and 
twenty  thousand  inhabitants  at  least ; 

2.  That  proof  be  given  to  the  Congress  that  it 
has  sufficient  means  to  provide  for  its  political 
existence ; 

3.  That  the  legislatures  of  the  States  affected 
be  heard  as  to  the  advisability  or  inadvisability 
of  granting  such  statehood,  which  opinion  shall  be 
given  within  six  months  reckoned  from  the  day 
on  which  the  respective  communication  is  for- 
warded ; 

4.  That  the  opinion  of  the  Executive  of  the 
Federal  Government  be  also  heard  on  the  subject; 
this  opinion  shall  be  given  within  seven  days  after 
the  date  on  which  it  was  requested. 

5.  That  the  creation  of  the  new  State  be  voted 
upon  favorably  by  two-thirds  of  the  Bepresenta- 
tives  and  Senators  present  in  their  respective 
Houses. 

6.  That  the   resolution   of  the    Congress   be 
ratified  by  a  majority  of  the  State  Legislatures, 
upon  examination  of  a  copy  of  the  record  of  the 
case,  provided  that  the  Legislatures  of  the  States 


APPENDIX  B  205 

to  which  the  section  belongs  shall  have  given  their 
consent. 

7.  That  the  ratification  referred  to  in  the  fore- 
going clause  be  given  by  two-thirds  of  the  legis- 
latures of  the  other  States,  if  the  legislatures  of 
the  States  to  which  the  Section  belongs  have  not 
given  their  consent. 

IV.  To  settle  finally  the  limits  of  the  States, 
terminating  the  differences  which  may  arise  be- 
tween them  relative  to  the  demarcation  of  their 
respective  territories,  except  when  the  differences 
be  of  a  litigious  nature. 

V.  To  change  the  residence  of  the  supreme 
powers  of  the  Federation. 

VI.  To  legislate  in  all  matters  relating  to  the 
Federal  District  and  the  Territories,  as  herein- 
after provided : 

1.  The  Federal  District  and  the  Territories 
shall  be  divided  into  municipalities,  each  of  which 
shall  have  the  area  and  population  sufficient  for 
its  own  support  and  for  its  contribution  toward 
the  common  expenses. 

2.  Each  municipality  shall  be  governed  by  a 
town  council  elected  by  direct  vote  of  the  people. 

3.  The  Federal  District  and  each  of  the  Terri- 
tories shall  be  administered  by  governors  under 
the  direct  orders  of  the  President  of  the  Eepublic. 
The  Governor  of  the  Federal  District  shall  de- 
spatch with  the  President,  and  the  Governor  of 
each  Territory  shall  despatch  with  the  President 
through  the  duly  constituted  channels.    The  Gov- 


206  APPENDIX  B 

ernor  of  the  Federal  District  and  the  Governor  of 
each  Territory  shall  be  appointed  by  the  Presi- 
dent and  may  be  removed  by  him  at  will. 

4.  The  Superior  Judges  and  those  of  First  In- 
stance of  the  Federal  District  as  well  as  of  the 
Territories  shall  be  named  by  the  Congress,  act- 
ing in  each  case  as  an  electoral  college.    In  the 
temporary  or  permanent  absences   of  the  said 
Superior  Judges  these  shall  be  replaced  by  ap- 
pointment of  the  Congress,  and  in  recess  by  tem- 
porary  appointments   of   the   Permanent    Com- 
mittee.   The  organic  law  shall  determine  the  man- 
ner of  filling  temporary  vacancies  in  the  case  of 
judges,  and  shall  designate  the  authority  before 
whom  they  shall  be  called  to  account  for  any 
dereliction,  excepting  the  provisions  of  this  Con- 
stitution with  regard  to  the  responsibility  of  offi- 
cials.   From  and  after  the  year  1923  the  Superior 
Judges  and  those  of  First  Instance  to  which  this 
clause  refers  may  only  be  removed  from  office  for 
bad  conduct  and  after  impeachment,  unless  they 
shall  have  been  promoted  to  the  next  higher  grade. 
From  and  after  the  said  date  the  compensation 
enjoyed  by  said  officials  shall  not  be  diminished 
during  their  term  of  office. 

5.  The  office  of  the  Public  Attorney  (Minis- 
terio  Publico)  of  the  Federal  District  and  of  the 
Territories,  shall  be  in  charge  of  an  Attorney 
General,  who  shall  reside  in  the  City  of  Mexico, 
and  of  such  Public  Attorney  or  Attorneys  as  the 
law  may  determine;  the  said  Attorney  General 


APPENDIX  B  207 

shall  be  under  the  direct  orders  of  the  President 
of  the  Republic,  who  shall  appoint  and  remove 
him  at  will. 

VII.  To  lay  the  taxes  necessary  to  meet  the 
expenditures  of  the  budget. 

VIII.  To  establish  the  bases  upon  which  the 
Executive  may  make  loans  on  the  credit  of  the 
nation ;  to  approve  the  said  loans  and  to  acknowl- 
edge and  order  the  payment  of  the  national  debt. 

IX.  To  enact  tariff  laws  on  foreign  commerce 
and  to  prevent  restrictions  from  being  imposed  on 
interstate  commerce. 

X.  To  legislate  for  the  entire  Republic  in  all 
matters  relating  to  mining,  commerce,  and  insti- 
tutions of  credit,  and  to  establish  the  sole  bank  of 
issue,  as  provided  in  Article  28  of  this  Constitu- 
tion. 

XL  To  create  or  abolish  Federal  offices,  and 
to  fix,  increase,  or  decrease  the  compensations  as- 
signed thereto. 

XII.  To  declare  war,  upon  examination  of  the 
facts  submitted  by  the  Executive. 

XIII.  To  regulate  the  manner  in  which  letters 
of  marque  may  be  issued ;  to  enact  laws  according 
to  which  prizes  on  sea  and  land  shall  be  adjudged 
valid  or  invalid ;  and  to  frame  the  admiralty  law 
for  times  of  peace  and  war. 

XIV.  To  raise  and  maintain  the  army  and 
navy  of  the  Union,  and  to  regulate  their  organiza- 
tion and  service. 

XV.  To  make  rules  for  the  organization  and 


208  APPENDIX  B 

discipline  of  the  National  Guard,  reserving  for  the 
citizens  who  compose  it  the  right  of  appointing 
their  respective  commanders  and  officers,  and  to 
the  States  the  power  of  instructing  it  in  conform- 
ity with  the  discipline  prescribed  by  the  said 
regulations. 

XVI.  To  enact  laws  on  citizenship,  naturaliza- 
tion, colonization,  emigration,  immigration  and 
public  health  of  the  Eepublic. 

1.  The  Public  Health  Service  shall  depend  di- 
rectly upon  the  President  of  the  Eepublic,  with- 
out  the   intervention   of  any  executive   depart- 
ment, and  its  general  provisions  shall  be  binding 
throughout  the  Eepublic. 

2.  In  the  event  of  epidemics  of  a  grave  or  dan- 
gerous nature,  of  the  invasion  of  diseases  from 
abroad,  the  Public  Health  Service  shall  put  into 
force    without    delay    the   necessary   preventive 
measures,  subject  to  their  subsequent  sanction  by 
the  President  of  the  Eepublic. 

3.  The  sanitary  authorities  shall  have  execu- 
tive faculties  and  their  determinations  shall  be 
obeyed  by  the  administrative  authorities  of  the 
country. 

-  4.  All  measures  which  the  Public  Health  Serv- 
ice shall  have  put  into  effect  in  its  campaign 
against  alcoholism  and  the  sale  of  substances  in- 
jurious to  man  and  tending  to  degenerate  the  race 
shall  be  subsequently  revised  by  the  Congress,  in 
such  cases  as  fall  within  the  jurisdiction  of  the 
latter. 


APPENDIX  B  209 

XVII.  To   enact  laws   on  general  means  of 
communication,  postroads  and  post  offices  and  to 
enact  laws  as  to  the  use  and  development  of  the 
waters  subject  to  the  Federal  jurisdiction. 

XVIII.  To  establish  mints,  regulate  the  value 
and  kinds  of  the  national  coin,  fix  the  value  of 
foreign  moneys,  and  adopt  a  general  system  of 
weights  and  measures. 

XIX.  To  make  rules  for  the  occupation  and 
alienation  of  public  lands  and  the  prices  thereof. 

XX.  To  enact  laws  as  to  the  organization  of 
the  diplomatic  and  consular  services. 

XXI.  To  define  the  crimes  and  offenses  against 
the  Nation  and  to  fix  the  penalties  therefor. 

XXII.  To  grant  pardons  for  offenses  subject 
to  federal  jurisdiction. 

XXIII.  To  make  rules  for  its  internal  govern- 
ment and  to  enact  the  necessary  provisions  to 
compel  the  attendance  of  absent  Representatives 
and  Senators  and  to  punish  the  acts  of  commis- 
sion or  omission  of  those  present. 

XXIV.  To  issue  the  organic  law  of  the  office 
of  the  Comptroller  of  the  Treasury. 

XXV.  To  sit  as  an  electoral  college  and  to 
name  the  Justices  of  the  Supreme  Court,  and  the 
Superior  and  Inferior  Judges  of  the  Federal  Dis- 
trict and  Territories. 

XXVI.  To  accept  the  resignation  of  the  Jus- 
tices of  the  Supreme  Court  and  of  the  Superior 
and  Inferior  Judges  of  the  Federal  District  and 


210  APPENDIX  B 

Territories,  and  to  name  substitutes  in  their  ab- 
sence and  to  appoint  their  successors. 

XXVII.  To  establish  professional  schools  of 
scientific  research  and  fine  arts,  vocational,  agri- 
cultural and  trade  schools,  museums,  libraries, 
observatories  and  other  institutes  of  higher  learn- 
ing, until  such  time  as  these  establishments  can 
be  supported  by  private  funds.     These  powers 
shall  not  pertain  exclusively  to  the  Federal  Gov- 
ernment. 

All  degrees  conferred  by  any  of  the  above  in- 
stitutions shall  be  valid  throughout  the  Eepublic. 

XXVIII.  To  sit  as  an  electoral  college  and  to 
choose  the  person  to  assume  the  office  of  Presi- 
dent of  the  Eepublic,  either  as  a  substitute  Presi- 
dent or  as  a  President  ad  interim  in  the  terms 
established  by  Articles  84  and  85  of  this  Constitu- 
tion. 

XXIX.  To  accept  the  resignation  of  the  Presi- 
dent of  the  Eepublic. 

XXX.  To  audit  the  accounts  which  shall  be 
submitted  annually  by  the  Executive;  this  audit 
shall  comprise  not  only  the  checking  of  the  items 
disbursed  under  the  Budget  but  the  exactness  of 
and  authorization  for  the  expenditures  in  each 
case. 

XXXI.  To  make  all  laws  necessary  for  carry- 
ing into  execution  the  foregoing  powers  and  all 
other  powers  vested  by  this  Constitution  in  the 
several  branches  of  the  Government. 


APPENDIX  B  211 

Art.  74.  The  House  of  Representatives  shall 
have  the  following  exclusive  powers : 

I.  To  sit  as  an  electoral  college  to  exercise  the 
powers  conferred  by  law  as  to  the  election  of  the 
President. 

II.  To  watch  by  means  of  a  committee  ap- 
pointed from  among  its  own  members  over  the 
faithful  performance  by  the  Comptroller  of  the 
Treasury  in  the  discharge  of  his  duties. 

III.  To   appoint  all  the  higher   officers   and 
other  employees  of  the  office  of  the  Comptroller 
of  the  Treasury. 

IV.  To  approve  the  annual  Budget,  after  a  dis- 
cussion as  to  what  taxes  must  in  its  judgment  be 
laid  to  meet  the  necessary  expenditures. 

V.  To  take  cognizance  of  all  charges  brought 
against  public  officials,  as  herein  provided,  for 
official  offenses,  and  should  the  circumstances  so 
warrant  to  impeach  them  before  the  Senate ;  and 
further  to  act  as  a  grand  jury  to  decide  whether 
there  is  or  is  not  good  ground  for  proceeding 
against  any  official  enjoying  constitutional  privi- 
leges, whenever  accused  of  offenses  of  the  common 
order. 

VI.  To  exercise  such  other  powers  as  may  be 
expressly  vested  in  it  by  this  Constitution. 

Art.  75.  The  House  of  Representatives,  in 
passing  the  Budget,  shall  not  fail  to  assign  a  defi- 
nite compensation  to  every  office  created  by  law, 
and  if  for  any  reason  such  compensation  shall  not 


APPENDIX  B 

be  assigned,  the  amount  fixed  in  the  preceding 
Budget  or  in  the  law  creating  the  office  shall  be 
presumed  to  be  assigned. 

Art.  76.    The  Senate  shall  have  the  following 
exclusive  powers : 

I.  To  approve  the  treaties  and  diplomatic  con- 
ventions concluded  by  the  Executive  with  foreign 
powers. 

II.  To  confirm  the  nominations  made  by  the 
President  of  diplomatic  ministers  or  agents,  con- 
suls   general,   higher    officials    of   the    treasury, 
colonels  and  other  superior  officers  of  the  army 
and  navy,  in  the  manner  and  form  by  law  pro- 
vided. 

III.  To  authorize  the  Executive  to  allow  na- 
tional troops  to  go  beyond  the  limits  of  the  Ee- 
public,    or   to    permit    foreign    troops    to    pass 
through  the  national  territory,  and  to  consent  to 
the  presence  of  fleets  of  another  nation  for  more 
than  one  month  in  Mexican  waters. 

IV.  To  consent  to  the  Executive  disposing  of 
the  national  guard  outside  of  the  limits  of  its  re- 
spective  States   or   Territories,   and  to   fix   the 
amount  of  the  force  to  be  used. 

V.  To    declare,    when    all   the   constitutional 
powers  of  any  State  have  disappeared,  that  the 
occasion  has  arisen  to  give  to  the  said  State  a 
provisional  governor,  who  shall  call  for  elections 
to  be  held  according  to  the  constitution  and  laws 
of  the  said  State.     The  appointment  of  such  a 


APPENDIX  B  213 

governor  shall  be  made  by  the  Senate  with  the 
approval  of  two-thirds  of  its  members  present  or 
during  recess  by  the  Permanent  Committee  by  the 
same  two-thirds  majority,  from  among  three 
names  submitted  by  the  President.  The  official 
thus  selected  shall  not  be  chosen  constitutional 
governor  in  the  elections  to  be  held  under  the  call 
which  he  shall  issue.  This  provision  shall  gov- 
ern whenever  the  State  Constitutions  do  not  pro- 
vide for  the  contingency. 

VI.  To  sit  as  a  Grand  Jury  to  take  cognizance 
of  such  official  offenses  of  functionaries  as  are  ex- 
pressly prescribed  by  this  Constitution. 

VII.  To  exercise  such  other  powers  as  may  be 
expressly  vested  in  it  by  this  Constitution. 

VIII.  To  adjust  all  political  questions  arising 
between  the  powers  of  a  State  whenever  one  of 
them  shall  appeal  to  the  Senate  or  whenever  by 
virtue  of  such  differences  a  clash  of  arms  has 
arisen  to  interrupt  the  constitutional  order.    In 
this  event  the  Senate  shall  decide  in  accordance 
with  the  Federal  Constitution  and  the  Constitu- 
tion of  the  State  involved. 

The  exercise  of  this  power  and  of  the  foregoing 
shall  be  regulated  by  law. 

Art.  77.    Each  House  may,  without  the  inter- 
vention of  the  other: 

I.  Pass  resolutions  upon  matters  exclusively 
relating  to  its  own  interior  government. 

II.  Communicate  with  the  other  House,  and 


214  APPENDIX  B 

with  the  Executive  through  committees  appointed 
from  among  its  members. 

III.  Appoint  the  employees  in  the  office  of  its 
secretary,  and  make  all  rules  and  regulations  for 
the  said  office. 

IV.  Issue  a  call  for  extraordinary  elections  to 
fill  any  vacancies  which  may  occur  in  its  member- 
ship. 


SECTION  rv 
Of  the  Permanent  Committee 

Art.  78.  During  the  recess  of  the  Congress 
there  shall  be  a  Permanent  Committee  consisting 
of  twenty-nine  members,  fifteen  of  whom  shall  be 
Representatives  and  fourteen  Senators,  appointed 
by  the  respective  Houses  on  the  eve  of  the  day  of 
adjournment. 

Art.  79.  In  addition  to  the  powers  expressly 
vested  in  it  by  this  Constitution,  the  Permanent 
Committee  shall  have  the  following  powers: 

I.  To  give  its  consent  to  the  use  of  the  national 
guard  as  provided  in  Article  76,  Clause  IV. 

II.  To  administer  the  oath  of  office,  should  the 
occasion  arise,  to  the  President,  to  the  Justices  of 
the  Supreme  Court,  to  the  Superior  Judges  of  the 
Federal  District  and  Territories,  on  such  occa- 
sions as  the  latter  officials  may  happen  to  be  in  the 
City  of  Mexico. 


APPENDIX  B  215 

III.  To  report  on  all  pending  matters,  so  that 
they  may  be  considered  in  the  next  session. 

IV.  To  call  extraordinary  sessions  in  the  case 
of  official  offenses  or  offenses  of  the  common  order 
committed  by  Secretaries  of  Executive  Depart- 
ments or  Justices  of  the  Supreme  Court,  and  offi- 
cial offenses  committed  by  State  Governors,  pro- 
vided the  case  shall  have  been  already  instituted 
by  the  Committee  of  the  Grand  Jury,  in  which 
event  no  other  business  of  the  Congress  shall  be 
considered,  nor  shall  the  sessions  be  prolonged 
beyond  the  time  necessary  for  a  decision. 


CHAPTEB  m 

Of  the  Executive  Power 

Art.  80.  The  exercise  of  the  supreme  executive 
power  of  the  Union  is  vested  in  a  single  indi- 
vidual, who  shall  be  called  "President  of  the 
United  States  of  Mexico. " 

Art.  81.  The  election  of  President  shall  be  di- 
rect, in  accordance  with  the  terms  of  the  electoral 
law. 

Art.  82.  The  President  of  the  Republic  shall 
have  the  following  qualifications: 

I.  He  shall  be  a  Mexican  citizen  by  birth,  in 
the  full  enjoyment  of  his  rights,  and  he  must  be 
the  son  of  Mexican  parents  by  birth. 


216  APPENDIX  B 

II.  He  shall  be  over  thirty-five  years  of  age 
at  the  time  of  election. 

III.  He  shall  have  resided  in  the  country  dur- 
ing the  entire  year  prior  to  the  election. 

IV.  He  shall  not  belong  to  the  ecclesiastical 
state  nor  be  a  minister  of  any  religious  creed. 

V.  In  the  event  of  belonging  to  the  army,  he 
shall  have  retired  from  active  service  90  days  im- 
mediately prior  to  the  election. 

VI.  He  shall  not  be  a  secretary  or  assistant 
secretary  of  any  executive  department,  unless  he 
shall  have  resigned  from  office  90  days  prior  to 
the  election. 

VII.  He  shall  not  have  taken  part,  directly  or 
indirectly,  in  any  uprising,  riot  or  military  coup. 

Art.  83.  The  President  shall  enter  upon  the 
duties  of  his  office  on  the  first  day  of  December, 
shall  serve  four  years  and  shall  never  be  re- 
elected. 

The  citizen  who  shall  replace  the  constitutional 
President  in  the  event  of  his  permanent  disability 
shall  not  be  elected  President  for  the  ensuing 
term. 

Nor  shall  the  person  designated  as  Acting 
President  during  the  temporary  disabilities  of  the 
constitutional  President  be  re-elected  President 
for  the  ensuing  term. 

Art.  84.  In  the  event  of  the  permanent  disabil- 
ity of  the  President  of  the  Eepublic,  if  this  shall 


APPENDIX  B  217 

occur  within  the  first  two  years  of  the  respective 
term,  the  Congress,  if  in  session,  shall  forthwith 
act  as  an  electoral  college,  and  with  the  attendance 
of  at  least  two-thirds  of  its  total  membership  shall 
choose  a  President  by  secret  ballot  and  by  a  ma- 
jority vote*,  and  the  same  Congress  shall  issue 
the  call  for  Presidential  elections  and  shall  en- 
deavor to  have  the  date  set  for  this  event  as  far 
as  possible  coincide  with  the  date  of  the  next  elec- 
tion of  Representatives  and  Senators  to  Congress. 

Should  the  disability  of  the  President  occur 
while  Congress  is  in  recess,  the  Permanent  Com- 
mittee shall  forthwith  designate  a  President  ad 
interim  who  shall  call  Congress  together  in 
extraordinary  session,  in  order  that  it  may  in  turn 
issue  the  call  for  Presidential  elections  in  the  man- 
ner provided  in  the  foregoing  paragraph. 

Should  the  disability  of  the  President  occur  in 
the  last  two  years  of  the  respective  term,  the 
Congress,  if  in  session,  shall  choose  the  substitute 
to  conclude  the  period  of  the  presidential  term;  if 
Congress  shall  not  be  in  session  the  Permanent 
Committee  shall  choose  a  President  ad  interim 
and  shall  summon  Congress  in  extraordinary  ses- 
sion, in  order  that  it  may  act  as  an  electoral  college 
and  proceed  to  the  election  of  the  substitute 
President. 

The  President  ad  interim  may  be  chosen  by 
Congress  as  substitute  President. 

The  citizen  designated  as  President  ad  interim 
for  the  purpose  of  calling  elections,  in  the  event 


218  APPENDIX  B 

of  the  disability  of  the  President  within  the  two 
first  years  of  the  respective  term,  shall  not  be 
chosen  in  the  elections  held  to  fill  such  vacancy 
and  for  which  he  was  designated. 

Art.  85.  If  the  President-Elect  shall  fail  to 
present  himself  at  the  beginning  of  any  constitu- 
tional term,  or  the  election  not  have  been  held  and 
the  result  made  known  by  the  first  of  December, 
the  outgoing  President  shall  nevertheless  vacate 
office  and  the  President  ad  interim  chosen  by  the 
Congress,  or  in  its  recess  by  the  Permanent  Com- 
mittee, shall  forthwith  assume  the  executive 
power.  All  action  taken  hereunder  shall  be  gov- 
erned by  the  provisions  of  the  foregoing  article. 

In  case  of  a  temporary  disability  of  the 
President,  the  Congress,  or  the  Permanent  Com- 
mittee if  the  Congress  shall  not  be  in  session,  shall 
designate  an  Acting  President  during  such  dis- 
ability. If  a  temporary  disability  shall  become 
permanent,  the  action  prescribed  in  the  preceding 
article  shall  be  taken. 

In  the  event  of  a  leave  of  absence  granted  to 
the  President  of  the  Eepublic  the  person  acting 
in  his  stead  shall  not  be  disqualified  from  being 
elected  in  the  ensuing  period,  provided  he  shall 
not  have  been  in  office  during  the  holding  of  elec- 
tions. 

Art.  86.  The  President  shall  not  resign  office 
except  for  grave  cause,  upon  which  the  Congress 


APPENDIX  B  219 

shall  pass,  to  which  body  the  resignation  shall  be 
tendered. 


Art.  87.  The  President,  before  entering  upon 
the  discharge  of  the  duties  of  his  office,  shall  make 
the  following  affirmation  before  the  Congress,  or 
in  its  recess  before  the  Permanent  Committee: 

"I  do  solemnly  affirm  that  I  will  defend  and 
enforce  the  Constitution  of  the  United  States  of 
Mexico  and  the  laws  arising  thereunder  and  that 
I  will  faithfully  and  conscientiously  perform  the 
duties  of  President  of  the  United  States  of  Mex- 
ico, to  which  I  have  been  chosen  by  the  people, 
having  ever  in  mind  the  welfare  and  prosperity 
of  the  Nation;  if  I  shall  fail  to  do  so,  may  the 
Nation  call  me  to  account. " 

Art.  88.  The  President  shall  not  absent  him- 
self from  the  national  territory  without  the  per- 
mission of  the  Congress. 

Art.  89.  The  President  shall  have  the  following 
powers  and  duties : 

I.  To  promulgate  and  execute  the  laws  enacted 
by  the  Congress,  providing,  within  the  executive 
sphere,  for  their  faithful  observance. 

II.  To  appoint  and  remove  at  will  the  Secre- 
taries of  Executive  Departments,  the  Attorney 
General  of  the  Kepublic,  the  Governor  of  the  Fed- 
eral District,  the  Governors  of  Territories,  the 
Attorney  General  of  the  Federal  District  and 


220  APPENDIX  B 

Territories;  and  to  appoint  and  remove  at  will 
all  other  Federal  employees  whose  appointment 
or  removal  is  not  otherwise  provided  for  by  law 
or  in  this  Constitution. 

III.  To   appoint,   with   the   approval   of   the 
Senate,  all  ministers,  diplomatic  agents  and  con- 
suls general. 

IV.  To  appoint,  with  the  approval  of  the  Sen- 
ate, the  colonels  and  other  superior  officers  of  the 
army  and  navy  and  the  superior  officials  of  the 
treasury. 

V.  To  appoint  all  other  officers  of  the  national 
army  and  navy,  as  by  law  provided. 

VI.  To  dispose  of  the  permanent  land  and  sea 
forces  for  the  domestic  safety  and  foreign  defense 
of  the  Union. 

VII.  To  dispose  of  the  national  guard  for  the 
same  purposes,  as  provided  by  Article  76,  Clause 
IV. 

VIII.  To  declare  war  in  the  name  of  the  United 
States  of  Mexico,  after  the  passage  of  the  cor- 
responding resolution  by  the   Congress   of  the 
Union. 

IX.  To  grant  letters  of  marque,  upon  the  terms 
and  conditions  fixed  by  the  Congress. 

X.  To  conduct  diplomatic  negotiations  and  to 
make  treaties. 

XL  To  call  Congress,  or  either  of  the  Houses, 
in  extraordinary  session,  whenever  in  his  judg- 
ment it  may  be  advisable. 

XII.    To  afford  the  judiciary  the  assistance 


APPENDIX  B 

necessary  for  the  expeditious  exercise  of  its  func- 
tions. 

XIII.  To  open  all  kinds  of  ports,  establish 
maritime  and  frontier  custom  houses  and  desig- 
nate their  location. 

XIV.  To  grant,  according  to  law,  pardons  to 
criminals  sentenced  for  offenses  within  the  juris- 
diction of  the  Federal  tribunals,  and  to  all  persons 
sentenced  for  offenses  of  the  common  order  in  the 
Federal  District  and  Territories. 

XV.  To  grant  exclusive  privileges  for  a  limited 
time,  and  according  to  the  respective  laws,  to  dis- 
coverers, inventors  or  improvers  in  any  branch 
of  industry. 

XVI.  Whenever  the  Senate  shall  not  be  in  ses- 
sion the  President  may  temporarily  make  the 
nominations  enumerated  in  Clauses  III  and  IV 
hereof,  but  these  nominations  shall  be  submitted 
to  the  Senate  so  soon  as  it  reconvenes. 

XVII.  To  exercise  such  other  rights  and  duties 
as  are  expressly  conferred  upon  him  by  this  Con- 
stitution. 

Art.  90.  For  the  transaction  of  administrative 
matters  of  the  Federal  Government  there  shall  be 
the  number  of  Secretaries  of  Executive  Depart- 
ments which  the  Congress  may  by  law  establish, 
which  law  shall  likewise  assign  among  the  various 
departments  the  several  matters  with  which  each 
shall  be  charged. 


222  APPENDIX  B 

Art.  91.  No  person  shall  be  appointed  Secre- 
tary of  an  Executive  Department  who  is  not  a 
Mexican  citizen  by  birth,  in  the  enjoyment  of  his 
rights  and  who  has  not  attained  the  age  of  thirty 
years. 

Art.  92.  All  regulations,  decrees  and  orders 
of  the  President  shall  be  signed  by  the  Secretary 
of  the  Executive  Department  to  which  the  matter 
pertains.  They  shall  not  be  binding  without  this 
requisite.  All  regulations,  decrees  and  orders  of 
the  President  touching  the  government  of  the 
Federal  District  and  the  administrative  depart- 
ments shall  be  transmitted  directly  by  the  Presi- 
dent to  the  Governor  of  the  District  and  to  the 
chief  of  the  respective  department. 

Art.  93.  The  Secretaries  of  Executive  Depart- 
ments shall  on  the  opening  of  each  regular  session 
report  to  the  Congress  as  to  the  state  of  their 
respective  Departments.  Either  House  may  sum- 
mon a  Secretary  of  an  Executive  Department  to 
inform  it,  whenever  a  bill  or  other  matter  per- 
taining to  his  department  is  under  discussion  or 
consideration. 

CHAPTER  IV 

Of  the  Judicial  Power 

Art.  94.  The  judicial  power  of  the  Federation 
is  vested  in  a  Supreme  Court  and  in  Circuit  and 
District  Courts,  whose  number  and  powers  shall 


APPENDIX  B  £23 

be  fixed  by  law.  The  Supreme  Court  of  Justice 
shall  consist  of  eleven  members ;  its  sittings  shall 
be  in  bane  and  its  hearings  shall  be  public,  except 
in  the  cases  where  public  interest  or  morality 
shall  otherwise  require.  It  shall  meet  at  such 
times  and  under  such  conditions  as  by  law  pre- 
scribed. No  sittings  of  the  court  shall  be  held 
without  the  attendance  of  at  least  two-thirds  of 
its  total  membership,  and  all  decisions  rendered 
shall  be  by  a  majority  vote. 

The  Justices  of  the  Supreme  Court  chosen  to 
this  office  in  the  forthcoming  elections  shall  serve 
two  years;  those  elected  at  the  conclusion  of  this 
first  term  shall  serve  four  years,  and  from  and 
after  the  year  1923  the  Justices  of  the  Supreme 
Court,  the  Circuit  and  District  Judges  may  only 
be  removed  for  malfeasance  and  after  impeach- 
ment proceedings,  unless  the  Circuit  and  District 
Judges  be  promoted  to  the  next  higher  grade. 

The  same  provision  shall  govern,  in  so  far  as 
it  be  applicable  to  the  terms  of  two  and  four  years, 
respectively,  to  which  this  article  refers. 

Art.  95.  The  Justices  of  the  Supreme  Court 
shall  have  the  following  qualifications : 

I.  They  shall  be  Mexican  citizens  by  birth,  in 
the  full  enjoyment  of  their  civil  and  political 
rights. 

II.  They  shall  be  over  thirty-five  years  of  age 
at  the  time  of  election. 

III.  They  shall  be  graduates  in  law  of  some 


APPENDIX  B 

institution  or  corporation  authorized  by  law  to 
confer  such  degrees. 

IV.  They  shall  be  of  good  repute  and  not  have 
been  convicted  of  any  offense  punishable  with 
more  than  one  year's  imprisonment;  but  convic- 
tion of  larceny,  deceit,  forgery,  embezzlement  or 
any  other  offense  seriously  impairing  their  good 
name  in  the  public  mind  shall  disqualify  them  for 
office,  whatever  may  have  been  the  penalty  im- 
posed. 

V.  They  shall  have  resided  in  the  country  for 
the  last  five  years,  except  in  the  case  of  absence 
due  to  public  service  abroad  for  a  period  not  ex- 
ceeding six  months. 

Art.  96.  The  members  of  the  Supreme  Court 
of  Justice  shall  be  chosen  by  the  Congress,  acting 
as  an  electoral  college;  the  presence  of  at  least 
two-thirds  of  the  total  number  of  Representatives 
and  Senators  shall  be  necessary  for  such  action. 
The  election  shall  be  by  secret  ballot  and  by  a 
majority  vote,  and  shall  be  held  as  among  the 
candidates  previously  proposed,  one  being  nomi- 
nated by  each  State  legislature,  as  provided  in 
the  respective  State  laws. 

Should  no  candidate  receive  a  majority  on  the 
first  ballot,  the  balloting  shall  be  repeated  between 
the  two  candidates  receiving  the  highest  number 
of  votes. 

Art.  97.  All  Circuit  and  District  Judges  shall 
be  appointed  by  the  Supreme  Court  of  Justice; 


APPENDIX  B  225 

they  shall  have  such  qualifications  as  by  law  re- 
quired, shall  serve  four  years  and  shall  not  be 
removed  except  by  impeachment  proceedings  or 
for  incapacity  to  discharge  their  duties,  in  accord- 
ance with  the  law. 

The  Supreme  Court  of  Justice  may  remove  the 
District  Judges  from  one  District  to  another,  or 
it  may  fix  their  seats  in  another  locality,  as  it 
may  deem  most  advantageous  to  the  public  busi- 
ness. A  similar  procedure  shall  be  observed  in 
the  case  of  Circuit  Judges. 

The  Supreme  Court  of  Justice  may  likewise  ap- 
point auxiliary  Circuit  and  District  Judges  to 
assist  in  the  labors  of  such  courts  as  have  an 
excessive  amount  of  business,  in  order  that  the 
administration  of  justice  may  be  speedy;  it  shall 
also  name  one  or  more  of  its  members  or  some 
district  or  circuit  judge  or  shall  designate  one  or 
more  special  commissioners,  whenever  it  shall 
deem  it  advisable  or  on  the  request  of  the  Presi- 
dent or  of  either  House  or  of  any  State  Governor, 
solely  for  the  purpose  of  inquiring  into  the  be- 
havior of  any  judge  or  federal  justice  or  into 
any  fact  or  facts  which  amount  to  a  violation  of 
any  individual  rights  or  to  the  subversion  of  the 
popular  will  or  any  other  offense  punishable  by 
Federal  statute. 

The  Circuit  and  District  Courts  shall  be 
assigned  among  the  several  Justices  of  the  Su- 
preme Court  who  shall  visit  them  periodically, 


APPENDIX  B 

shall  observe  the  conduct  of  their  judges,  listen 
to  any  complaint  presented  against  them  and  per- 
form all  such  other  acts  as  the  law  may  require. 
The  Supreme  Court  shall  appoint  and  remove  at 
will  its  clerk  of  the  court  and  other  employees 
on  the  roster  established  by  law.  The  Circuit  and 
District  Judges  shall  likewise  appoint  and  remove 
at  will  their  respective  clerks  and  employees. 

The  Supreme  Court  shall  choose  each  year  one 
of  its  members  to  act  as  Chief  Justice,  with  the 
right  of  re-election. 

Each  Justice  of  the  Supreme  Court  on  assuming 
office  shall  make  an  affirmation  before  Congress, 
or  if  this  is  in  recess,  before  the  Permanent  Com- 
mittee, as  follows: 

The  Presiding  Officer  shall  say :  "  Do  you  prom- 
ise to  perform  faithfully  and  conscientiously  the 
duties  of  Justice  of  the  Supreme  Court  with  which 
you  have  been  charged,  and  to  defend  and  enforce 
the  Constitution  of  the  United  States  of  Mexico 
and  the  laws  arising  thereunder,  having  ever  in 
mind  the  welfare  and  prosperity  of  the  Nation  ?" 
To  which  the  Justice  shall  reply,  "I  do."  On 
which  the  Presiding  Officer  shall  answer:  "If 
you  fail  to  do  so,  may  the  Nation  call  you  to* 
account. ' ' 

The  Circuit  and  District  Judges  shall  make  the 
affirmation  of  office  before  the  Supreme  Court  or 
before  such  other  authority  as  the  law  may  de- 
termine. 


APPENDIX  B  227 

Art.  98.  No  temporary  disability  of  a  Justice 
of  the  Supreme  Court  not  exceeding  one  month 
shall  be  filled,  provided  there  be  otherwise  a 
quorum.  In  the  absence  of  a  quorum  the  Con- 
gress, or  in  its  recess  the  Permanent  Committee, 
shall  name  a  substitute  selected  from  among  the 
candidates  submitted  by  the  States  for  the  election 
of  the  justice  in  question  and  not  chosen,  to  serve 
during  such  disability.  If  the  disability  does  not 
exceed  two  months,  the  Congress,  or  during  its 
recess  the  Permanent  Committee,  shall  choose  at 
will  a  temporary  justice. 

In  the  event  of  the  death,  resignation  or  dis- 
qualification of  any  justice  of  the  Supreme  Court, 
a  new  election  shall  be  held  by  the  Congress  to  fill 
this  vacancy  as  provided  in  Article  96. 

If  the  Congress  shall  not  be  in  session,  the  Per- 
manent Committee  shall  make  a  temporary 
appointment  until  such  time  as  the  Congress  shall 
convene  and  proceed  to  the  corresponding  elec- 
tion. 

Art.  99.  The  resignation  of  a  justice  of  the 
Supreme  Court  shall  only  be  accepted  for  grave 
cause,  approved  by  the  Congress,  to  whom  the 
resignation  shall  be  tendered.  In  the  recesses 
of  the  Congress  the  power  to  act  on  this  matter 
belongs  to  the  Permanent  Committee. 

Art.  100.  The  Supreme  Court  shall  grant  all 
leaves  of  absence  of  its  members,  when  they  do 


228  APPENDIX  B 

not  exceed  one  month;  such  as  do  exceed  this 
period  shall  be  granted  by  the  House  of  Represen- 
tatives, or  during  its  recess  by  the  Permanent 
Committee. 

Art.  101.  No  Justice  of  the  Supreme  Court, 
Circuit  or  District  Judge,  nor  clerk  of  any  of  these 
courts  shall  under  any  circumstances  accept  any 
State,  Federal  or  private  commission  or  office, 
excepting  honorary  titles  from  scientific,  literary 
or  charitable  associations.  The  violation  of  this 
provision  shall  work  a  forfeiture  of  office. 

Art.  102.  The  office  of  the  Public  Attorney 
shall  be  organized  in  accordance  with  the  law,  and 
its  officers  shall  be  appointed  and  removed  at  will 
by  the  Executive.  They  shall  be  under  the  direc- 
tion of  an  Attorney  General  who  shall  possess  the 
same  qualifications  as  are  required  for  the  office 
of  Justice  of  the  Supreme  Court. 

The  Public  Attorneys  shall  be  charged  with  the 
judicial  prosecution  of  all  Federal  offenses ;  they 
shall  accordingly  sue  out  all  orders  of  arrest, 
assemble  and  offer  all  evidence  as  to  the  respon- 
sibility of  the  accused,  see  that  the  trials  are  con- 
ducted in  due  order  so  that  the  administration  of 
justice  may  be  speedy,  pray  the  imposition  of 
sentence,  and  in  general  take  part  in  all  matters 
required  by  law. 

The  Attorney  General  of  the  Republic  shall  per- 
sonally intervene  in  matters  to  which  the  Federal 


APPENDIX  B  229 

Government  is  a  party,  in  cases  affecting  minis- 
ters, diplomatic  agents  and  consuls  general,  and 
in  all  controversies  between  two  or  more  States 
of  the  Union,  between  the  Federal  Government 
and  a  State  or  between  the  several  powers  of  a 
State.  The  Attorney  General  may  either  person- 
ally or  through  one  of  the  Public  Attorneys  take 
part  in  all  other  cases  in  which  the  Public  Attor- 
neys are  called  upon  to  act. 

The  Attorney  General  shall  be  the  legal  advisor 
of  the  Government,  and  both  he  and  the  Public 
Attorneys  under  his  orders  shall  faithfully  obey 
the  law  and  shall  be  liable  for  all  breaches  or  for 
any  violations  which  they  may  incur  in  the  dis- 
charge of  their  duties. 

Art.  103.  The  Federal  tribunals  shall  take  cog- 
nizance of: 

I.  All  controversies  arising  out  of  laws  or  acts 
of  the  authorities  which  shall  infringe  any  per- 
sonal guarantees. 

II.  All  controversies  arising  out  of  laws  or 
acts  of  the  federal  authorities  which  limit  or  en- 
croach upon  the  sovereignty  of  the  States. 

III.  All  controversies  arising  out  of  laws  or 
acts  of  the  State  authorities  which  invade  the 
sphere  of  the  Federal  authorities. 

Art.  104.  The  Federal  Tribunals  shall  have 
jurisdiction  over: 

I.    All  controversies  of  a  civil  or  criminal  na- 


230  APPENDIX  B 

ture  arising  out  of  the  application  and  enforce- 
ment of  the  Federal  laws,  or  out  of  treaties 
concluded  with  foreign  powers.  Whenever  such 
controversies  affect  only  private  rights,  the  reg- 
ular local  courts  of  the  States,  the  Federal  Dis- 
trict and  Territories  shall,  at  the  election  of  the 
plaintiff,  assume  jurisdiction.  Appeal  may  be  had 
from  all  judgments  of  first  instance  to  the  next 
higher  tribunal  of  the  same  court  in  which  the 
case  was  first  heard.  Appeal  may  be  taken  from 
sentences  of  second  instance  to  the  Supreme  Court 
of  Justice,  which  appeal  shall  be  prepared,  sub- 
mitted and  prosecuted,  in  accordance  with  the  pro- 
cedure provided  by  law. 

II.  All  cases  pertaining  to  admiralty  law. 

III.  All  cases  to  which  the  Federation  may  be 
a  party. 

IV.  All  cases  arising  between  two  or  more 
States,  or  between  any  State  and  the  Federal 
Government,  as  well  as  those  arising  between  the 
courts  of  the  Federal  District  and  those  of  the 
Federal  Government  or  of  a  State. 

V.  All  cases  arising  between  a  State  and  one 
or  more  citizens  of  another  State. 

.  VI.    All  cases  concerning  diplomatic  agents  and 
consuls. 

Art.  105.  The  Supreme  Court  of  Justice  shall 
have  exclusive  jurisdiction  in  all  controversies 
arising  between  two  or  more  States,  between  the 
powers  of  government  of  any  State  as  to  the  con- 


APPENDIX  B 

stitutionality  of  their  acts,  or  between  one  or  more 
States  and  the  Federal  Government,  and  in  all 
cases  to  which  the  Federal  Government  may  be  a 
party. 

Art.  106.  The  Supreme  Court  of  Justice  shall 
likewise  have  exclusive  jurisdiction  to  determine 
all  questions  of  jurisdiction  between  the  Federal 
tribunals,  between  these  and  those  of  the  States, 
or  between  those  of  one  State  and  those  of  another. 

Art.  107.  All  controversies  mentioned  in 
Article  103  shall  be  prosecuted  by  the  injured 
party  in  accordance  with  the  judicial  forms  and 
procedure  which  the  law  shall  establish,  subject 
to  the  following  conditions : 

I.  The  judgment  shall  always  be  so  drawn  as 
to  affect  exclusively  private  individuals,  and  shall 
confine  itself  to  affording  them  redress  in  the 
special  case  to  which  the  complaint  refers;  but. 
it  shall  make  no  general  statement  as  to  the  law 
or  the  act  that  may  have  formed  the  basis  for 
the  complaint. 

II.  In  civil  or  penal  suits,  excepting  those  men- 
tioned in  Clause  IX  hereof,  the  writ  of  "amparo" 
shall  issue  only  against  final  judgments  when  no 
other  ordinary  recourse  is  available  by  which  these 
judgments  may  be  modified  or  amended,  if  the 
violation  of  the  law  shall  have  occurred  in  the 
judgment,  or  if,  although  committed  during  the 
course  of  the  trial,  objection  was  duly  noted  and 


APPENDIX  B 

protest  entered  against  the  denial  of  reparation, 
and  provided  further  that  if  committed  in  first 
instance  it  shall  have  been  invoked  in  second  in- 
stance as  a  violation  of  the  law. 

Notwithstanding  the  foregoing  provision,  the 
Supreme  Court  may  in  penal  cases  waive  any 
defects  in  the  petition  when  there  has  been  a  mani- 
fest violation  of  the  law  which  has  left  the  peti- 
tioner without  recourse,  or  when  he  has  been  tried 
by  a  law  not  strictly  applicable  to  the  case,  pro- 
vided failure  to  take  advantage  of  this  violation 
has  been  merely  an  oversight. 

III.  In    civil    or    penal    suits    the    writ    of 
"amparo"  shall  issue  only  if  substantial  portions 
of  the  rules  of  procedure  have  been  violated,  and 
provided  further  that  the  said  violation  shall  de- 
prive the  petitioner  of  means  of  defense. 

IV.  In  addition  to  the  case  mentioned  in  the 
foregoing  paragraph,  the  writ  of  "amparo"  shall 
issue  only  on  a  final  judgment  in  a  civil  suit, — 
provided  the  requirements  set  forth  in  Clause  II 
hereof  have  been  complied  with, — when  the  judg- 
ment shall  be  contrary  to  the  letter  of  the  law 
applicable  to  the  case  or  contrary  to  its  legal 
interpretation,  when  it  includes  persons,  actions, 
-defenses,  or  things  which  have  not  been  the  object 

of  the  suit,  or  finally  when  all  these  have  not  been 
included  either  through  omission  or  express  re- 
fusal. 

When  the  writ  of  "amparo"  is  sought  against 
mesne  judgments,  in  accordance  with  the  provi- 


APPENDIX  B  233 

sions  of  the  foregoing  clause,  these  rules  shall  be 
observed,  as  far  as  applicable. 

V.  In  penal  suits,  the  authorities  responsible 
for  the  violation  shall  stay  the  execution  of  final 
judgment  against  which  the  writ  of ' i  amparo ' '  has 
been  sought ;  for.  this  purpose  the  petitioner  shall, 
within  the  period  set  by  law,  give  notice,  under 
oath,  to  the  said  authorities  of  the  interposition 
of  this  recourse,  accompanying  it  with  two  copies 
of  the  petition,  one  of  which  shall  be  delivered  to 
the  opposing  party  and  the  other  filed. 

VI.  The  execution  of  a  final  judgment  in  civil 
suits  shall  only  be  stayed  when  the  petitioner 
shall   give   bond  to   cover   damages    occasioned 
thereby,    unless    the    other   party    shall   give    a 
counter  bond  (1)  to  guarantee  that  the  normal 
conditions  and  relations  previously  existing  be 
restored,  and  (2)  to  pay  the  corresponding  dam- 
ages,   in    the    event    of    the    granting    of    the 
"  amparo. "     In  such  event  the  interposition  of 
the  recourse  of  "  amparo  "  shall  be  communicated 
as  provided  in  the  foregoing  clause. 

VII.  If  a  writ  of  "  amparo  "  be  sought  against 
a  final  judgment,  a  certified  copy  of  such  portions 
of  the  record  as  the  petitioner  may  desire  shall 
be  requested  from  the  authority  responsible  for 
the  violation;  to  this  there  shall  be  added  such 
portions  as  the  other  party  may  desire  and  a 
clear  and  succinct  statement  by  the  said  authority 
of  the  justification  of  the  act  protested  j  note  shall 
be  made  of  this  on  the  record. 


APPENDIX  B 

VIII.  When  a  writ  of  "amparo"  is  sought 
against  a  final  judgment,  the  petition  shall  be 
brought  before  the  Supreme  Court ;  this  petition, 
together  with  the  copy  required  by  Clause  VII, 
shall  be  either  presented  to  the  Supreme  Court  or 
sent  through  the  authority  responsible  for  the 
violation  or  through  the  District  Court  of  the  cor- 
responding State.    The  Supreme  Court  shall  ren- 
der judgment  without   any   other  formality   or 
procedure  than  the  petition,  the  document  pre- 
sented by  the  other  party  and  that  of  the  Attorney 
General  or  the  Public  Attorney  he  may  name  in 
his    stead,    and    shall    comprise   no    other   legal 
question  than  that  contained  in  the  complaint. 

IX.  When  the  acts  of  an  authority  other  than 
the    judicial    are    involved   or   the    acts    of   the 
judiciary  exercised  outside  of  the  suit  or  after 
the  termination  thereof,  or  acts  committed  during 
the  suit  whose  execution  is  of  impossible  repara- 
tion, or  which  affect  persons  not  parties  to  the 
suit,  the  writ  of  "amparo"  shall  be  sought  before 
the  District  Court  within  whose  jurisdiction  is 
located  the  place  where  the  act  protested  was  com- 
mitted or  attempted;  the  procedure  in  this  case 
shall  be  confined  to  the  report  of  the  authority 
and  to  a  hearing,  the  call  for  which  shall  be  issued 
in  the  same  order  of  the  court  as  that  calling  for 
the  report.    This  hearing  shall  be  held  at  as  early 
a  date  as  possible,  the  testimony  of  both  parties 
offered,  arguments  heard  which  shall  not  exceed 
one  hour  for  each  side,  and  finally  the  judgment 


APPENDIX  B  235 

which  shall  be  pronounced  at  the  same  hearing. 
The  judgment  of  the  District  Court  shall  be  final, 
if  the  interested  parties  do  not  appeal  to  the  Su- 
preme Court  within  the  period  set  by  law  and  in 
the  manner  prescribed  by  Clause  VIII. 

In  case  of  a  violation  of  the  guarantees  of  Arti- 
cles 16,  19  and  20,  recourse  shall  be  had  through 
the  appellate  court  of  the  court  committing  the. 
breach  or  to  the  corresponding  District  Court.  An 
appeal  against  the  decision  of  any  of  these  courts 
may  be  taken  to  the  Supreme  Court. 

If  the  district  judge  shall  not  reside  in  the  same 
locality  as  the  official  guilty  of  the  violation,  the 
judge  before  whom  the  petition  of  "amparo"  shall 
be  submitted  shall  be  determined  by  law;  this 
judge  shall  be  authorized  to  suspend  temporarily 
the  execution  of  the  act  protested,  in  accordance 
with  the  terms  established  by  law. 

X.  Any  official  failing  to  suspend  the  execution 
of  the  act  protested,  when  in  duty  bound  to  do 
so,  or  when  he  admits  an  insufficient  or  improper 
bond,  shall  be  turned  over  to  the  proper  authori- 
ties ;  the  civil  and  penal  liability  of  the  official  shall 
in  these  cases  be  a  joint  liability  with  the  person 
offering  the  bond  and  his  surety. 

XL  If  after  the  granting  of  an  "amparo," 
the  guilty  official  shall  persist  in  the  act  or  acts 
against  which  the  petition  of  ' '  amparo ' '  was  filed, 
or  shall  seek  to  render  of  no  effect  the  judgment 
of  the  Federal  authority,  he  shall  be  forthwith 


236  APPENDIX  B 

removed  from  office  and  turned  over  for  trial  to 
the  corresponding  district  court. 

XII.  Wardens  and  jailers  who  fail  to  receive 
a  duly  certified  copy  of  the  formal  order  of  com- 
mitment within  the  seventy-two  hours  granted  by 
Article  19,  reckoned  from  the  time  the  accused  is 
placed  at  the  disposal  of  the  court,  shall  bring  this 
fact  to  the  attention  of  the  court,  immediately 
upon  expiration  of  this  period ;  and  if  the  proper 
order  be  not  received  within  the  next  three  hours 
the  accused  shall  be  set  at  liberty. 

Any  official  who  shall  violate  this  provision  and 
the  article  referred  to  in  the  foregoing  paragraph 
shall  be  immediately  turned  over  to  the  proper 
authorities.  Any  official  or  agent  thereof  who, 
after  an  arrest  has  been  made,  shall  fail  to  place 
the  accused  at  the  disposition  of  the  court  within 
the  next  twenty-four  hours  shall  himself  be  turned 
over  to  the  proper  authority. 

If  the  detention  be  effected  outside  the  locality 
in  which  the  court  is  situated,  there  shall  be  added 
to  the  period  mentioned  in  the  preceding  sentence 
the  time  necessary  to  travel  from  the  said  locality 
to  that  where  the  detention  took  place. 

TITLE  IV 
Of  the  Responsibility  of  Officials 

Art.  108.  Senators  and  Representatives  of 
Congress,  Justices  of  the  Supreme  Court,  Secre- 
taries of  Executive  Departments  and  the  Attorney 


APPENDIX  B  237 

General  of  the  Eepublic  shall  be  liable  for  all  com- 
mon offenses  committed  during  their  term  of  office, 
as  well  as  for  all  official  offenses  or  acts  of  com- 
mission or  omission  in  which  they  may  incur  in 
the  discharge  of  their  duties. 

Governors  of  States  and  members  of  State 
Legislatures  shall  be  liable  for  violation  of  the 
Constitution  and  the  Federal  Laws. 

The  President  of  the  Republic  may  only  be  im- 
peached during  his  term  of  office  for  high  treason 
and  common  offenses  of  a  serious  character. 

Art.  109.  If  the  offense  belongs  to  the  common 
order  the  House  of  Representatives,  acting  as  a 
grand  jury,  shall  determine  by  a  majority  vote 
of  its  total  membership  whether  there  is  or  is  not 
any  ground  for  proceeding  against  the  accused. 

If  the  finding  be  favorable  to  the  accused,  no 
further  action  shall  be  taken;  but  such  finding 
shall  not  be  a  bar  to  the  prosecution  of  the  charge 
so  soon  as  the  constitutional  privilege  shall  cease, 
since  the  finding  of  the  House  does  not  in  any 
way  determine  the  merits  of  the  charge. 

If  the  finding  be  adverse,  the  accused  shall  ipso 
facto  be  removed  from  office  and  be  placed  at  the 
disposition  of  the  ordinary  courts  of  justice,  ex- 
cept in  the  case  of  the  President  of  the  Republic, 
who  may  only  be  impeached  before  the  Senate,  as 
in  the  case  of  an  official  offense. 

Art.  110.  No  constitutional  privilege  shall  be 
extended  to  any  high  Federal  functionary  when 


238  APPENDIX  B 

tried  for  official  offenses,  misdemeanors,  or  omis- 
sions committed  by  him  in  the  discharge  of  any 
public  function  or  commission,  during  the  time  in 
which,  according  to  law,  the  privilege  is  enjoyed. 
This  provision  shall  be  applicable  to  cases  of  com- 
mon offenses  committed  under  the  same  circum- 
stances. In  order  that  the  proceedings  may  be 
instituted  when  the  functionary  returns  to  the 
exercise  of  his  own  functions,  the  rules  set  forth 
in  Article  104  of  the  Constitution  shall  be  observed. 

Art.  111.  The  Senate  acting  as  a  grand  jury 
shall  try  all  cases  of  impeachment :  but  it  may  not 
institute  such  proceedings  without  a  previous  ac- 
cusation brought  by  the  House  of  Eepresentatives. 

If  the  Senate  should,  after  hearing  the  accused 
and  conducting  such  proceedings  as  it  may  deem 
advisable,  determine  by  a  majority  vote  of  two- 
thirds  of  its  total  membership  that  the  accused 
is  guilty,  the  latter  shall  be  forthwith  removed 
from  office  by  virtue  of  such  decision,  or  be  dis- 
qualified from  holding  any  other  office  for  such 
time  as  the  law  may  determine. 

When  the  same  offense  is  punishable  with  an 
additional  penalty,  the  accused  shall  be  placed  at 
the  disposition  of  the  regular  authorities  who  shall 
judge  and  sentence  him  in  accordance  with  the 
law. 

In  all  cases  embraced  by  this  article  and  in  those 
included  by  the  preceding  both  the  decisions  of 


APPENDIX  B  239 

the  Grand  Jury  and  the  findings  of  the  House  of 
Eepresentatives  shall  be  final. 

Any  person  shall  have  the  right  to  denounce  be- 
fore the  House  of  Eepresentatives  offenses  of  a 
common  order  or  of  an  official  character  committed 
by  high  Federal  functionaries;  and  whenever  the 
said  House  of  Eepresentatives  shall  determine 
that  there  exist  good  grounds  for  impeachment 
proceedings  before  the  Senate,  it  shall  name  a 
committee  from  among  its  own  members  to  sus- 
tain the  charges  brought. 

The  Congress  shall  as  soon  as  possible  enact  a 
law  as  to  the  responsibility  of  all  Federal  officials 
and  employees  which  shall  fix  as  official  offenses 
all  acts,  of  commission  or  omission,  which  may 
prejudice  the  public  interest  and  efficient  adminis- 
tration, even  though  such  acts  may  not  heretofore 
have  been  considered  offenses.  These  officials 
shall  be  tried  by  a  jury  in  the  same  manner  as 
provided  for  trials  by  jury  in  Article  20. 

Art.  112.  No  pardon  shall  be  granted  the 
offender  in  cases  of  impeachment. 

Art.  113.  The  responsibility  for  official 
breaches  and  offenses  may  only  be  enforced  during 
such  time  as  the  functionary  shall  remain  in  office 
and  for  one  year  thereafter. 

Art.  114.  In  civil  cases  no  privilege  or  immu- 
nity in  favor  of  any  public  functionary  shall  be 
recognized. 


240  APPENDIX  B 

TITLE  V 
Of  the  States  of  the  Federation 

Art.  115.  The  States  shall  adopt  for  their  in- 
ternal government  the  popular,  representative, 
republican  form  of  government;  they  shall  have 
as  the  basis  of  their  territorial  division  and  politi- 
cal and  administrative  organization  the  free  mu- 
nicipality, in  accordance  with  the  following  pro- 
visions : 

I.  Each  municipality  shall  be  administered  by 
a  town  council  chosen  by  direct  vote  of  the  people, 
and  no  authority  shall  intervene  between  the  mu- 
nicipality and  the  State  Government. 

II.  The  municipalities  shall  freely  administer 
their  own  revenues  which  shall  be  derived  from  the 
taxes  fixed  by  the  State  Legislatures  which  shall 
at  all  times  be  sufficient  to  meet  their  needs. 

III.  The  municipalities  shall  be  regarded  as 
enjoying  corporate  existence  for  all  legal  pur- 
poses. 

The  Federal  Executive  and  the  State  Governors 
shall  have  command  over  all  public  forces  of  the 
municipalities  wherein  they  may  permanently  or 
temporarily  reside. 

Constitutional  State  Governors  shall  not  be  re- 
elected,  nor  shall  their  term  of  office  exceed  four 
years. 

The  prohibitions  of  Article  83  are  applicable  to 
substitute  or  ad  interim  governors. 


APPENDIX  B 

The  number  of  representatives  in  the  State 
Legislatures  shall  be  in  proportion  to  the  inhabi- 
tants of  each  State,  but  in  no  case  shall  the  number 
of  representatives  in  any  State  Legislature  be  less 
than  fifteen. 

Each  electoral  district  of  the  States  shall  choose 
a  Representative  and  an  alternate  to  the  State 
Legislature. 

Every  State  Governor  shall  be  a  Mexican  citizen 
by  birth  and  a  native  thereof,  or  resident  therein 
not  less  than  five  years 'immediately  prior  to  the 
day  of  election. 

Art.  116.  The  States  shall  have  the  power  to 
fix  among  themselves,  by  friendly  agreements, 
their  respective  boundaries ;  but  these  agreements 
shall  not  be  carried  into  effect  without  the  ap- 
proval of  the  Congress. 

Art.  117.    No  State  shall- 

I.  Enter  into  alliances,  treaties  or  coalitions 
with  another  State  or  with  foreign  powers. 

II.  Grant  letters  of  marque  or  reprisal. 

III.  Coin  money,  issue  paper  money,  stamps 
or  stamped  paper. 

IV.  Levy  taxes  on  persons  or  property  passing 
through  its  territory. 

V.  Prohibit  or  tax,  directly  or  indirectly,  the 
entry  into  its  territory,  or  the  withdrawal  there- 
from, of  any  merchandise,  foreign  or  domestic. 

VI.  Burden  the  circulation  or  consumption  of 


APPENDIX  B 

domestic  or  foreign  merchandise  with  taxes  or 
duties  to  be  collected  by  local  custom  houses  or 
subject  to  inspection  the  said  merchandise  or  re- 
quire it  to  be  accompanied  by  documents. 

VII.  Enact  or  maintain  in  force  laws  or  fiscal 
regulations  discriminating,  by  taxation  or  other- 
wise, between  merchandise,  foreign  or  domestic, 
on  account  of  its  origin,  whether  this  discrimina- 
tion be  established  with  regard  to  similar  local 
products  or  to  similar  products  of  foreign  origin. 

Art.  118.  No  State  shall,  without  the  consent 
of  the  Congress : 

I.  Establish    tonnage    dues    or    other    port 
charges,  or  impose  taxes  or  other  duties  upon  im- 
ports or  exports. 

II.  Keep  at  any  time  permanent  troops  or  ves- 
sels of  war. 

Art.  119.  Every  State  shall  be  bound  to  deliver 
without  delay  to  the  demanding  authorities  the 
fugitives  from  justice  from  other  States  or  from 
foreign  nations. 

In  such  cases  the  writ  of  the  court  granting  the 
extradition  shall  operate  as  a  sufficient  warrant 
for  the  detention  of  the  accused  for  one  month, 
in  the  case  of  extradition  from  one  State  to 
another,  and  for  two  months  in  the  case  of  inter- 
national extradition. 

Art.  120.  The  State  Governors  are  bound  to 
publish  and  enforce  the  Federal  laws. 


APPENDIX  B  243 

Art.  121.  Full  faith  and  credit  shall  be  given 
in  each  State  of  the  Federation  to  the  public  acts, 
records  and  judicial  proceedings  of  all  the  other 
States.  The  Congress  shall  by  general  laws  pre- 
scribe the  manner  of  proving  the  said  acts,  records 
and  proceedings  and  the  effect  thereof. 

I.  The  laws  of  a  State  shall  only  be  binding 
within  its  own  confines,  and  shall  therefore  have 
no  extra-territorial  force. 

II.  Movable  and  immovable  property  shall  be 
governed  by  the  lex  sitae. 

III.  Judgments  of  a  State  court  as  to  property 
and  property  rights  situated  in  another  State  shall 
only  be  binding  when  expressly  so  provided  by 
the  law  of  the  latter  State. 

Judgments  relating  to  personal  rights  shall  only 
be  binding  in  another  State  provided  the  person 
shall  have  expressly,  or  impliedly  by  reason  of 
domicile,  submitted  to  the  jurisdiction  of  the  court 
rendering  such  judgment,  and  provided  further 
that  personal  service  shall  have  been  secured. 

IV.  All  acts  of  civil  status  performed  in  ac- 
cordance with  the  laws  of  one  State  shall  be  bind- 
ing in  all  other  States. 

V.  All  professional  licenses  issued  by  the  au- 
thorities of  one  State  in  accordance  with  its  laws 
shall  be  valid  in  all  other  States. 

Art.  122.  The  Powers  of  the  Union  are  bound 
to  protect  the  States  against  all  invasion  or  exter- 
nal violence.  In  case  of  insurrection  or  internal 


APPENDIX  B 

disturbance  they  shall  give  them  the  same  protec- 
tion, provided  the  Legislature  of  the  State,  or  the 
Executive  thereof  if  the  Legislature  is  not  in  ses- 
sion, shall  so  request. 

TITLE  VI 

Of  Labor  and  Social  Welfare 

Art.  123.  The  Congress  and  the  State  Legisla- 
tures shall  make  laws  relative  to  labor  with  due 
regard  for  the  needs  of  each  region  of  the  Repub- 
lic, and  in  conformity  with  the  following  prin- 
ciples, and  these  principles  and  laws  shall  govern 
the  labor  of  skilled  and  unskilled  workmen,  em- 
ployees, domestic  servants  and  artisans,  and  in 
general  every  contract  of  labor. 

I.  Eight  hours  shall  be  the  maximum  limit  of 
a  day's  work. 

II.  The  maximum  limit  of  night  work  shall  be 
seven  hours.     Unhealthy  and  dangerous  occupa- 
tions are  forbidden  to  all  women  and  to  children 
under  sixteen  years  of  age.    Night  work  in  fac- 
tories is   likewise   forbidden  to   women   and  to 
children  under  sixteen  years  of  age ;  nor  shall  they 
be  employed  in  commercial  establishments  after 
ten  o  'clock  at  night. 

"Til.  The  maximum  limit  of  a  day's  work  for 
children  over  twelve  and  under  sixteen  years  of 
age  shall  be  six  hours.  The  work  of  children  under 
twelve  years  of  age  shall  not  be  made  the  subject 
of  a  contract. 


APPENDIX  B  245 

IV.  Every  workman  shall  enjoy  at  least  one 
day's  rest  for  every  six  days'  work. 

V.  Women   shall  not   perform   any  physical 
work  requiring  considerable  physical  effort  during 
the  three  months  immediately  preceding  parturi- 
tion ;  during  the  month  following  parturition  they 
shall  necessarily  enjoy  a  period  of  rest  and  shall 
receive  their  salaries  or  wages  in  full  and  retain 
their  employment  and  the  rights  they  may  have 
acquired  under  their  contracts.    During  the  period 
of  lactation  they  shall  enjoy  two  extraordinary 
daily  periods  of  rest  of  one-half  hour  each,  in 
order  to  nurse  their  children. 

VI.  The  minimum  wage  to  be  received  by  a 
workman  shall  be  that  considered  sufficient,  ac- 
cording to  the  conditions  prevailing  in  the  respec- 
tive region  of  the  country,  to  satisfy  the  normal 
needs  of  the  life  of  the  workman,  his  education 
and  his  lawful  pleasures,  considering  him  as  the 
head  of  a  family.    In  all  agricultural,  commercial, 
manufacturing  or  mining  enterprises  the  workmen 
shall  have  the  right  to  participate  in  the  profits 
in  the  manner  fixed  in  Clause  IX  of  this  article. 

VII.  The  same  compensation  shall  be  paid  for 
the  same  work,  without  regard  to  sex  or  nation- 
ality. 

VIII.  The  minimum  wage  shall  be  exempt  from 
attachment,  set-off  or  discount. 

IX.  The  determination  of  the  minimum  wage 
and  of  the   rate  of  profit-sharing  described  in 
Clause  VI  shall  be  made  by  special  commissions  to 


APPENDIX  B 

be  appointed  in  each  municipality  and  to  be  subor-. 
dinated  to  the  Central  Board  of  Conciliation  to 
be  established  in  each  State. 

X.  All  wages  shall  be  paid  in  legal  currency 
and  shall  not  be  paid  in  merchandise,   orders, 
counters  or  any  other  representative  token  with 
which  it  is  sought  to  substitute  money. 

XI.  When  owing  to  special  circumstances  it 
becomes  necessary  to  increase  the  working  hours, 
there  shall  be  paid  as  wages  for  the  overtime  one 
hundred  per  cent  more  than  those  fixed  for  reg- 
ular time.    In  no  case  shall  the  overtime  exceed 
three  hours  nor  continue  for  more  than  three 
consecutive  days ;  and  no  women  of  whatever  age 
nor  boys  under  sixteen  years  of  age  may  engage 
in  overtime  work. 

XII.  In  every  agricultural,  industrial,  mining 
or  other  class  of  work  employers  are  bound  to 
furnish  their  workmen  comfortable  and  sanitary 
dwelling-places,  for  which  they  may  charge  rents 
not  exceeding  one-half  of  one  per  cent  per  month 
of  the  assessed  value  of  the  properties.    (See  Art. 
27,  Clause  VII,  second  paragraph.)     They  shall 
likewise  establish  schools,  dispensaries  and  other 
services  necessary  to  the  community.    If  the  fac- 
tories are  located  within  inhabited  places  and  more 
than  one  hundred  persons  are  employed  therein, 
the  first  of  the  above-mentioned  conditions  shall 
be  complied  with. 

XIII.  Furthermore,  there  shall  be  set  aside  in 
these  labor  centers,  whenever  their  population 


APPENDIX  B  247 

exceeds  two  hundred  inhabitants,  a  space  of  land 
not  less  than  five  thousand  square  meters  for  the 
establishment  of  public  markets,  and  the  construc- 
tion of  buildings  designed  for  municipal  services 
and  places  of  amusement.  No  saloons  nor  gam- 
bling houses  shall  be  permitted  in  such  labor 
centers. 

XIV.  Employers  shall  be  liable  for  labor  ac- 
cidents and  occupational  diseases  arising  from 
work;  therefore,  employers  shall  pay  the  proper 
indemnity,  according  to  whether  death  or  merely 
temporary  or  permanent  disability  has  ensued,  in 
accordance   with   the   provisions    of   law.     This 
liability  shall  remain  in  force  even  though  the 
employer  contract  for  the  work  through  an  agent. 

XV.  Employers  shall  be  bound  to  observe  in 
the  installation  of  their  establishments  all  the  pro- 
visions of  law  regarding  hygiene  and  sanitation 
and  to  adopt  adequate  measures  to  prevent  acci- 
dents due  to  the  use  of  machinery,  tools  and  work- 
ing materials,  as  well  as  to  organize  work  in  such 
a  manner  as  to  assure  the  greatest  guarantees 
possible  for  the  health  and  lives  of  workmen  com- 
patible with  the  nature  of  the  work,  under  penal- 
ties which  the  law  shall  determine. 

XVI.  Workmen  and  employers  shall  have  the 
right  to  unite  for  the  defense  of  their  respective 
interests,  by  forming  syndicates,  unions,  etc. 

XVII.  The  law  shall  recognize  the  right  of 
workmen  and  employers  to  strike  and  to  lockout. 

XVIII.  Strikes  shall  be  lawful  when  by  the 


248  APPENDIX  B 

employment  of  peaceful  means  they  shall  aim  to 
bring  about  a  balance  between  the  various  factors 
of  production,  and  to  harmonize  the  rights  of 
capital  and  labor.  In  the  case  of  public  services, 
the  workmen  shall  be  obliged  to  give  notice  ten 
days  in  advance  to  the  Board  of  Conciliation  and 
Arbitration  of  the  date  set  for  the  suspension  of 
work.  Strikes  shall  only  be  considered  unlawful 
when  the  majority  of  the  strikers  shall  resort  to 
acts  of  violence  against  persons  or  property,  or  in 
case  of  war  when  the  strikers  belong  to  establish- 
ments and  services  dependent  on  the  government. 
Employees  of  military  manufacturing  establish- 
ments of  the  Federal  Government  shall  not  be  in- 
cluded in  the  provisions  of  this  clause,  inasmuch 
as  they  are  a  dependency  of  the  national  army. 

XIX.  Lockouts  shall  only  be  lawful  when  the 
excess  of  production  shall  render  it  necessary  to 
shut  down  in  order  to  maintain  prices  reasonably 
above  the  cost  of  production,  subject  to  the  ap- 
proval of  the  Board  of  Conciliation  and  Arbitra- 
tion. 

XX.  Differences  or  disputes  between  capital 
and  labor  shall  be  submitted  for  settlement  to  a 
board  of  conciliation  and  arbitration  to  consist  of 
an  equal  number  of  representatives  of  the  work- 
men and  of  the  employers  and  of  one  representa- 
tive of  the  Government. 

XXI.  If  the  employer  shall  refuse  to  submit 
his  differences  to  arbitration  or  to  accept  the 
award  rendered  by  the  Board,  the  labor  contract 


APPENDIX  B  249 

shall  be  considered  as  terminated,  and  the  em- 
ployer shall  be  bound  to  indemnify  the  workman 
by  the  payment  to  him  of  three  months '  wages,  in 
addition  to  the  liability  which  he  may  have  in- 
curred by  reason  of  the  dispute.  If  the  workman 
reject  the  award,  the  contract  will  be  held  to  have 
terminated. 

XXII.  An  employer  who  discharges  a  work- 
man without  proper  cause  or  for  having  joined  a 
union  or  syndicate  or  for  having  taken  part  in  a 
lawful  strike  shall  be  bound,  at  the  option  of  the 
workman,  either  to  perform  the  contract  or  to 
indemnify  him  by  the  payment  of  three  months' 
wages.    He  shall  incur  the  same  liability  if  the 
workman  shall  leave  his  service  on  account  of  the 
lack  of  good  faith  on  the  part  of  the  employer  or 
of  maltreatment  either  as  to  his  own  person  or 
that  of  his  wife,  parents,  children  or  brothers  or 
sisters.    The  employer  cannot  evade  this  liability 
when  the  maltreatment  is  inflicted  by  subordinates 
or  agents  acting  with  his  consent  or  knowledge. 

XXIII.  Claims   of  workmen  for   salaries   or 
wages  accrued  during  the  past  year  and  other  in- 
demnity claims  shall  be  preferred  over  any  other 
claims,  in  cases  of  bankruptcy  or  composition. 

XXIV.  Debts  contracted  by  workmen  in  favor 
of  their  employers  or  their  employers '  associates, 
subordinates   or   agents,   may   only  be   charged 
against  the  workmen  themselves  and  in  no  case 
and  for  no  reason  collected  from  the  members  of 
his  family.    Nor  shall  such  debts  be  paid  by  the 


250  APPENDIX  B 

taking  of  more  than  the  entire  wages  of  the  work- 
man for  any  one  month. 

XXV.  No  fee  shall  be  charged  for  finding  work 
for  workmen  by  municipal   offices,   employment 
bureaus  or  other  public  or  private  agencies. 

XXVI.  Every   contract   of  labor  between   a 
Mexican  citizen  and  a  foreign  principal  shall  be 
legalized  before  the  competent  municipal  author- 
ity and  viseed  by  the  consul  of  the  nation  to  which 
the  workman  is  undertaking  to  go,  on  the  under- 
standing that,  in  addition  to  the  usual  clauses, 
special  and  clear  provisions  shall  be  inserted  for 
the  payment  by  the  foreign  principal  making  the 
contract  of  the  cost  to  the  laborer  of  repatriation. 

XXVII.  The  following  stipulations   shall  be 
null  and  void  and  shall  not  bind  the  contracting 
parties,  even  though  embodied  in  the  contract : 

(a)  Stipulations  providing  for  inhuman  day's 
work  on  account  of  its  notorious  excessiveness,  in 
view  of  the  nature  of  the  work. 

(b)  Stipulations  providing  for  a  wage  rate 
which  in  the  judgment  of  the  Board  of  Concilia- 
tion and  Arbitration  is  not  remunerative. 

(c)  Stipulations  providing  for  a  term  of  more 
than  one  week  before  the  payment  of  wages. 

(d)  Stipulations  providing  for  the  assigning 
of  places  of  amusement,  eating  places,  cafes,  tav- 
erns, saloons  or  shops  for  the  payment  of  wages, 
when  employees  of  such  establishments  are  not 
involved. 

(e)  Stipulations  involving  a  direct  or  indirect 


APPENDIX  B  251 

obligation  to  purchase  articles  of  consumption  in 
specified  shops  or  places. 

(f)  Stipulations  permitting  the  retention  of 
wages  by  way  of  fines. 

(g)  Stipulations  constituting  a  waiver  on  the 
part  of  the  workman  of  the  indemnities  to  which 
he  may  become  entitled  by  reason  of  labor  acci- 
dents or  occupational  diseases,  damages  for  breach 
of  contract,  or  for  discharge  from  work. 

(h)  All  other  stipulations  implying  the  waiver 
of  any  right  vested  in  the  workman  by  labor  laws. 

XXVIII.  The  law  shall  decide  what  property 
constitutes  the  family  patrimony.     These  goods 
shall  be  inalienable  and  shall  not  be  mortgaged, 
nor  attached,  and  may  be  bequeathed  with  simpli- 
fied formalities  in  the  succession  proceedings. 

XXIX.  Institutions  of  popular  insurance*  es- 
tablished for  old  age,  sickness,  life,  unemployment, 
accident  and  others  of  a  similar  character,  are 
considered  of  social  utility ;  the  Federal  and  State 
Governments  shall  therefore  encourage  the  orga- 
nization of  institutions  of  this  character  in  order 
to  instill  and  inculcate  popular  habits  of  thrift. 

XXX.  Cooperative  associations  for  the  con- 
struction of  cheap  and  sanitary  dwelling  houses 
for  workmen  shall  likewise  be  considered  of  social 
utility  whenever  these  properties  are  designed  to 

*  In  the  desire  to  adhere  as  closely  as  possible  to  the  original, 
the  term  "popular  insurance"  has  been  used.  It  would  seem, 
however,  that  in  making  use  of  the  expression  "Segwos  Popu- 
larcs,"  it  was  intended  to  convey  the  full  connotation  of  the  term 
"Social  Insurance."  (See  "Social  Insurance,"  Seager,  1910.) 


252  APPENDIX  B 

be  acquired  in  ownership  by  the  workmen  within 
specified  periods. 

TITLE  VII 
Of  General  Provisions 

Art.  124.  All  powers  not  expressly  vested  by 
this  Constitution  in  the  Federal  authorities  are 
understood  to  be  reserved  to  the  States. 

Art.  125.  No  person  shall  hold  at  the  same 
time  two  Federal  offices  or  one  Federal  and  one 
State  elective  office;  if  elected  to  two,  he  shall 
choose  between  them. 

Art.  126.  No  payment  shall  be  made  which  is 
not  included  in  the  Budget  or  authorized  by  a  law 
subsequent  to  the  same. 

Art.  127.  The  President  of  the  Eepublic,  the 
Justices  of  the  Supreme  Court,  Representatives 
and  Senators  and  other  public  officials  of  the  Fed- 
eration who  are  chosen  by  popular  election  shall 
receive  a  compensation  for  their  services,  which 
shall  be  paid  by  the  Federal  Treasury  and  deter- 
mined by  law.  This  compensation  may  not  be 
waived,  and  any  law  increasing  or  decreasing  it 
shall  have  no  effect  during  the  period  for  which  the 
functionary  holds  office. 

Art.  128.  Every  public  official,  without  excep- 
tion, shall,  before  entering  on  the  discharge  of  his 


APPENDIX  B  253 

duties,  make  an  affirmation  to  maintain  this  con- 
stitution and  the  laws  arising  thereunder. 

Art.  129.  In  time  of  peace  no  military  authori- 
ties shall  exercise  other  functions  than  those  bear- 
ing direct  relation  to  military  discipline.  No  per- 
manent military  posts  shall  be  established  other 
than  in  castles,  forts  and  arsenals  depending  di- 
rectly upon  the  Federal  Government,  or  in  camps, 
barracks,  or  depots,  established  outside  of 
inhabited  places  for  the  stationing  of  troops. 

Art.  130.  The  Federal  authorities  shall  have 
power  to  exercise  in  matters  of  religious  worship 
and  outward  ecclesiastical  forms  such  intervention 
as  by  law  authorized.  All  other  officials  shall  act 
as  auxiliaries  to  the  Federal  authorities. 

The  Congress  shall  not  enact  any  law  establish- 
ing or  forbidding  any  religion  whatsoever. 

Marriage  is  a  civil  contract.  Marriage  and  all 
other  acts  relating  to  the  civil  status  of  individuals 
shall  appertain  to  the  exclusive  jurisdiction  of  the 
civil  authorities  in  the  manner  and  form  by  law 
provided,  and  they  shall  have  the  force  and  valid- 
ity given  them  by  said  laws. 

A  simple  promise  to  tell  the  truth  and  to  com- 
ply with  obligations  contracted  shall  subject  the 
promisor,  in  the  event  of  a  breach,  to  the  penalties 
established  therefor  by  law. 

The  law  recognizes  no  juridicial  personality  in 
the  religious  institutions  known  as  churches. 


254  APPENDIX  B 

Ministers  of  religious  creeds  shall  be  considered 
as  persons  exercising  a  profession,  and  shall  be 
directly  subject  to  the  laws  enacted  on  the  matter. 

The  State  legislatures  shall  have  the  exclusive 
power  of  determining  the  maximum  number  of 
ministers  of  religious  creeds,  according  to  the 
needs  of  each  locality.  Only  a  Mexican  by  birth 
may  be  a  minister  of  any  religious  creed  in  Mexico. 

No  ministers  of  religious  creeds  shall,  either  in 
public  or  private  meetings,  or  in  acts  of  worship 
or  religious  propaganda,  criticise  the  fundamental 
laws  of  the  country,  the  authorities  in  particular 
or  the  Government  in  general ;  they  shall  have  no 
vote,  nor  be  eligible  to  office,  nor  shall  they  be 
entitled  to  assemble  for  political  purposes. 

Before  dedicating  new  temples  of  worship  fo*- 
public  use,  permission  shall  be  obtained  from  the 
Department  of  the  Interior  (Gobernacion) ;  tin, 
opinion  of  the  Governor  of  the  respective  State 
shall  be  previously  heard  on  the  subject.  Every 
place  of  worship  shall  have  a  person  charged  with 
its  care  and  maintenance,  who  shall  be  legally 
responsible  for  the  faithful  performance  of  the 
laws  on  religious  observances  within  the  said  place 
of  worship,  and  for  all  the  objects  used  for  pur- 
poses of  worship. 

The  caretaker  of  each  place  of  public  worship, 
together  with  ten  citizens  of  the  place,  shall 
promptly  advise  the  municipal  authorities  as  to 
the  person  charged  with  the  care  of  the  said  place 
of  worship.  The  outgoing  minister  shall  in  every 


APPENDIX  B  255 

instance  give  notice  of  any  change,  for  which  pur- 
pose he  shall  be  accompanied  by  the  incoming 
minister  and  ten  other  citizens  of  the  place.  The 
municipal  authorities,  under  penalty  of  dismissal 
and  fine,  not  exceeding  1,000  pesos  for  each  breach, 
shall  be  responsible  for  the  exact  performance  of 
this  provision;  they  shall  keep  a  register  of  the 
places  of  worship  and  another  of  the  caretakers 
thereof,  subject  to  the  same  penalty  as  above  pro- 
vided. The  municipal  authorities  shall  likewise 
give  notice  to  the  Department  of  the  Interior 
through  the  State  Governor,  of  any  permission 
to  open  to  the  public  use  a  new  place  of  worship,, 
as  well  as  of  any  change  in  the  caretakers.  Gifts 
of  personalty  may  be  received  in  the  interior  of 
places  of  public  worship. 

Under  no  conditions  shall  studies  carried  on  in 
institutions  devoted  to  the  professional  training 
of  ministers  of  religious  creeds  be  given  credit  or 
granted  any  other  dispensation  of  privilege  which 
shall  have  for  its  purpose  the  accrediting  of  the 
said  studies  in  official  institutions.  Any  authority 
violating  this  provision  shall  be  punished  crimi- 
nally, and  all  such  dispensation  of  privilege  be  null 
and  void,  and  shall  invalidate  wholly  and  entirely 
the  professional  degree  toward  the  obtaining  of 
which  the  infraction  of  this  provision  may  in  any 
way  have  contributed. 

No  periodical  publication  which  either  by  reason 
of  its  program,  its  title  or  merely  by  its  gen- 
eral tendencies,  is  of  a  religious  character,  shall 


256  APPENDIX  B 

comment  upon  any  political  affairs  of  the  nation, 
nor  publish  any  information  regarding  the  acts 
of  the  authorities  of  the  country  or  of  private  in- 
dividuals, in  so  far  as  the  latter  have  to  do  with 
public  affairs. 

Every  kind  of  political  association  whose  name 
shall  bear  any  word  or  any  indication  relating 
to  any  religious  belief  is  hereby  strictly  forbidden. 
No  assemblies  of  any  political  character  shall  be 
held  within  places  of  public  worship. 

No  minister  of  any  religious  creed  may  inherit, 
either  on  his  own  behalf  or  by  means  of  a  trustee 
or  otherwise,  any  real  property  occupied  by  any 
association  of  religious  propaganda  or  religious 
or  charitable  purposes.  Ministers  of  religious 
creeds  are  incapable  legally  of  inheriting  by  will 
from  ministers  of  the  same  religious  creed  or  from 
any  private  individual  to  whom  they  are  not  re- 
lated by  blood  within  the  fourth  degree. 

All  real  and  personal  property  pertaining  to 
the  clergy  or  to  religious  institutions  shall  be  gov- 
erned, in  so  far  as  their  acquisition  by  private 
parties  is  concerned,  in  conformity  with  Article 
27  of  this  Constitution. 

No  trial  by  jury  shall  ever  be  granted  for  the 
infraction  of  any  of  the  preceding  provisions. 

Art.  131.  The  Federal  Government  shall  have 
exclusive  power  to  levy  duties  on  merchandise 
imported,  exported  or  passing  in  transit  through 
the  national  territory,  as  well  as  to  regulate  at 


APPENDIX  B  25  T 

all  times,  and  if  necessary  to  forbid  for  the  sake 
of  public  safety  or  for  police  reasons,  the  circula- 
tion in  the  interior  of  the  Republic  of  all  kinds  of 
goods,  regardless  of  their  origin ;  but  the  Federal 
Government  shall  have  no  power  to  establish  or 
decree  in  the  Federal  District  and  Territories  the 
taxes  and  laws  to  which  Clauses  VI  and  VII  of 
Article  117  refer. 

Art.  132.  All  forts,  barracks,  warehouses,  and 
other  real  property,  destined  by  the  Federal  Gov- 
ernment for  public  service  or  common  use,  shall 
be  under  the  jurisdiction  of  the  Federal  authori- 
ties, in  accordance  with  the  law  which  the  Con- 
gress shall  issue  on  the  subject;  any  of  these 
establishments  which  may  subsequently  be  ac- 
quired within  the  territory  of  any  State  shall  like- 
wise be  subject  to  Federal  jurisdiction,  provided 
consent  thereto  shall  have  been  obtained  from  the 
respective  State  legislature. 

Art.  133.  This  Constitution  and  the  laws  of 
the  United  States  of  Mexico  which  shall  be  made 
in  pursuance  hereof  and  all  treaties  made  or  which 
shall  be  made  under  the  authority  of  the  President 
of  the  Eepublic,  with  the  approval  of  the  Congress, 
shall  be  the  supreme  law  of  the  land.  And  the 
judges  in  every  State  shall  be  bound  by  this  Con- 
stitution and  by  these  laws  and  treaties,  anything 
in  the  Constitution  or  laws  of  any  State  to  the 
contrary  notwithstanding. 


258  APPENDIX  B 

Art.  134.  Bids  shall  be  called  for  on  all  con- 
tracts which  the  Government  may  have  occasion 
to  enter  into  for  the  execution  of  any  public  works ; 
these  bids  shall  be  submitted  under  seal  and  shall 
only  be  opened  publicly. 

TITLE  VIII 
Of  the  Amendments  to  the  Constitution 

Art.  135.  The  present  Constitution  may  be 
added  to  or  amended.  No  amendment  or  addi- 
tion shall  become  part  of  the  Constitution  until 
agreed  to  by  the  Congress  of  the  Union  by  a 
two-thirds  vote  of  the  members  present  and  ap- 
proved by  a  majority  of  the  State  legislatures. 
The  Congress  shall  count  the  votes  of  the  legis- 
latures and  make  the  declaration  that  the  amend- 
ments or  additions  have  been  adopted. 

TITLE  IX 
Of  the  Inviolability  of  the  Constitution 

Art.  136.  This  Constitution  shall  not  lose  its 
force  and  vigor,  even  though  its  observance  be 
interrupted  by  rebellion.  In  case  that  through 
any  public  disturbance  a  Government  contrary  to 
the  principles  which  it  sanctions  be  established, 
its  force  shall  be  restored  so  soon  as  the  people 
shall  regain  their  liberty,  and  those  who  have  par- 
ticipated in  the  Government  emanating  from  the 


APPENDIX  B  259 

rebellion  or  have  cooperated  with  it  shall  be  tried 
in  accordance  with  its  provisions  and  with  the 
laws  arising  under  it. 


TRANSITORY  ARTICLES 

Article  1.  This  Constitution  shall  be  published 
at  once  and  a  solemn  affirmation  made  to  defend 
and  enforce  it  throughout  the  Republic;  but  its 
provisions,  except  those  relating  to  the  election 
of  the  supreme  powers,  Federal  and  State,  shall 
not  go  into  effect  until  the  first  day  of  May,  1917, 
at  which  time  the  Constitutional  Congress  shall 
be  solemnly  convened  and  the  oath  of  office  taken 
by  the  citizen  chosen  at  the  forthcoming  elections 
to  discharge  the  duties  of  President  of  the  Repub- 
lic. 

The  provisions  of  Clause  V  of  Article  82  shall 
not  be  applicable  in  the  elections  to  be  called  in 
accordance  with  Article  2  of  the  Transitory  Arti- 
cles, nor  shall  active  service  in  the  army  act  as  a 
disqualification  for  the  office  of  representative  or 
senator,  provided  the  candidate  shall  not  have 
active  command  of  troops  in  the  respective  elec- 
toral district. 

Nor  shall  the  secretaries  nor  assistant  secre- 
taries of  executive  departments  be  disqualified 
from  election  to  the  next  Federal  Congress,  pro- 
vided they  shall  definitively  resign  from  office  on 
or  before  the  day  on  which  the  respective  call  is 
issued. 


860  APPENDIX  B 

Art.  2.  The  person  charged  with  the  executive 
power  of  the  Nation  shall  immediately,  upon  the 
publication  of  this  Constitution,  call  for  elections 
to  fill  the  Federal  offices ;  he  shall  see  that  these 
elections  be  held  so  that  Congress  may  be  consti- 
tuted within  a  reasonable  time,  in  order  that  it 
may  count  the  votes  cast  in  the  presidential  elec- 
tions and  make  known  the  name  of  the  person  who 
has  been  elected  President  of  the  Eepublic;  this 
shall  be  done  in  order  that  the  provisions  of  the 
foregoing  article  may  be  complied  with. 

Art.  3.  The  next  constitutional  term  shall  be 
computed,  in  the  case  of  Senators  and  Kepresenta- 
tives,  from  the  first  of  September  last,  and  in  the 
case  of  the  President  of  the  Eepublic,  from  the 
first  of  December,  1916. 

Art.  4.  Senators  who  in  the  coming  election 
shall  be  classified  as  "even"  shall  serve  only  two 
years,  in  order  that  the  Senate  may  be  renewed 
by  half  every  two  years. 

Art.  5.  The  Congress  shall  in  the  month  of 
May  next  choose  the  Justices  of  the  Supreme 
Court  in  order  that  this  tribunal  may  be  consti- 
tuted on  the  first  day  of  June,  1917. 

In  these  elections,  Article  96  shall  not  govern 
in  so  far  as  the  candidates  proposed  by  the  State 
Legislatures  are  concerned ;  but  those  chosen  shall 
be  designated  for  the  first  term  of  two  years  pre- 
scribed by  Article  94. 

Art.  6.  The  Congress  shall  meet  in  extraordi- 
nary session  on  the  fifteenth  day  of  April,  1917, 


APPENDIX  B  261 

to  act  as  an  electoral  college,  for  the  computing 
of  the  ballots  and  the  determination  of  the  election 
of  President  of  the  Bepublic,  at  which  time  it  shall 
make  known  the  results;  it  shall  likewise  enact 
the  organic  law  of  the  Circuit  and  District  Courts, 
the  organic  law  of  the  Tribunals  of  the  Federal 
District  and  Territories,  in  order  that  the  Supreme 
Court  of  Justice  may  immediately  appoint  the  In- 
ferior and  Superior  District  and  Circuit  Judges ; 
at  the  same  session  the  Congress  shall  choose  the 
Superior  Judges  and  Judges  of  First  Instance  of 
the  Federal  District  and  Territories,  and  shall 
also  enact  all  laws  submitted  by  the  Executive. 
The  Circuit  and  District  Judges  and  the  Superior 
and  Inferior  Judges  of  the  Federal  District  and 
Territories  shall  take  office  not  later  than  the  first 
day  of  July,  1917,  at  which  time  such  as  shall  have 
been  temporarily  appointed  by  the  person  now 
charged  with  the  executive  power  of  the  nation 
shall  cease  to  act. 

Art.  7.  For  this  occasion  only,  the  votes  for 
the  office  of  Senator  shall  be  counted  by  the  Board 
of  the  First  Electoral  District  of  each  State  or  of 
the  Federal  District  which  shall  be  instituted  for 
the  counting  of  the  votes  of  Representatives.  This 
Board  shall  issue  the  respective  credentials  to  the 
Senators-elect. 

Art.  8.  The  Supreme  Court  shall  decide  all 
pending  petitions  of  "amparo,"  in  accordance 
with  the  laws  at  present  in  force. 

Art,  9.    The  First  Chief  of  the  Constitutionalist 


262  APPENDIX  B 

Army,  charged  with  the  executive  power  of  the 
Nation,  is  hereby  authorized  to  issue  the  electoral 
law  according  to  which,  on  this  occasion,  the  elec- 
tions to  fill  the  various  Federal  offices  shall  be 
held. 

Art.  10.  All  persons  who  shall  have  taken  part 
in  the  Government  emanating  from  the  rebellion 
against  the  legitimate  government  of  the  Republic, 
or  who  may  have  given  aid  to  the  said  rebellion 
and  later  taken  up  arms  or  held  any  office  or  com- 
mission of  the  factions  which  have  opposed  the 
constitutionalist  government,  shall  be  tried  in  ac- 
cordance with  the  laws  at  present  in  force,  unless 
they  shall  have  been  previously  pardoned  by  the 
said  constitutionalist  government. 

Art.  11.  Until  such  time  as  the  Congress  of  the 
Union  and  the  State  Legislatures  shall  legislate 
on  the  agrarian  and  labor  problems,  the  bases 
established  by  this  Constitution  for  the  said  laws 
shall  be  put  into  force  throughout  the  Eepublic. 

Art.  12.  All  Mexicans  who  shall  have  fought  in 
the  ranks  of  the  constitutionalist  army  and  their 
children  and  widows  and  all  other  persons  who 
shall  have  rendered  service  to  the  cause  of  the 
revolution,  or  to  public  instruction,  shall  be  pre- 
ferred in  the  acquisition  of  lots  to  which  Article 
27  refers,  and  shall  be  entitled  to  such  rebates  as 
the  law  shall  determine. 

Art.  13.  All  debts  contracted  by  working  men 
on  account  of  work  up  to  the  date  of  this  Consti- 
tution with  masters,  their  subordinates  and  agents, 


APPENDIX  B  263 

are  hereby  declared  wholly  and  entirely  dis- 
charged. 

Art.  14.  The  Departments  of  Justice  and  of 
Public  Instruction  and  Fine  Arts  are  hereby  abol- 
ished. 

Art.  15.  The  citizen  at  present  charged  with 
the  executive  power  is  hereby  authorized  to  issue 
the  law  of  civil  responsibility  applicable  to  all 
promoters,  accomplices  and  abettors  of  the 
offenses  committed  against  the  constitutional 
order  in  the  month  of  February,  1913,  and  against 
the  Constitutionalist  Government. 

Art.  16.  The  Constitutional  Congress  in  the 
regular  period  of  sessions,  to  begin  on  the  first  day 
of  September  of  the  present  year,  shall  issue  all 
the  organic  laws  of  the  Constitution  which  may 
not  have  been  already  issued  in  the  extraordinary 
session  to  which  Transitory  Article  number  6 
refers;  and  it  shall  give  preference  to  the  laws 
relating  to  personal  guarantees  and  to  Articles 
30,  32,  33,  35,  36,  38,  107  and  the  latter  part  of 
Article  111  of  this  Constitution. 

Signed  at  Queretaro  de  Arteaga,  January  31, 
1917. 


APPENDIX  0 

A   STATEMENT   REGARDING   THE   MEXICAN   RAILWAYS 

The  Mexican  News  Bureau  in  Washington  re- 
cently sent  to  the  newspapers  of  the  United  States 
propaganda  notes  attempting  to  disprove  state- 
ments made  in  articles  of  mine  which  appeared  in 
the  Saturday  Evening  Post. 

Copies  of  these  "News  Notes "  follow: 

NEWS  NOTES  FROM  MEXICAN  NEWS  BUREAU,  613  RIGGS 

BLDG.,  WASHINGTON,  D.  C.,  THURSDAY,  OCTOBER  11, 

1917 

Railroad  Repairs  and  Recognition 

Those  who  are  acquainted  with  the  condition  in 
Mexico  and  who  have  followed  the  steady  march 
of  events  in  that  country  during  the  past  six  or 
seven  years,  have  been  surprised  at  some  recent 
statements  appearing  in  the  Saturday  Evening 
Post  of  October  6,  by  Carl  W.  Ackerman,  regard- 
ing that  country.  One  is  to  the  effect  that:  "For 
seven  years  practically  no  repairs  have  been  made 
on  any  of  the  railway  lines — either  those  owned 
by  the  Government  or  those  owned  abroad  and 
operated  by  the  authorities." 

264 


APPENDIX  C  265 

As  a  matter  of  fact,  nothing  could  be  further 
from  the  truth  than  this  assertion.  Repairs  to 
all  the  lines  in  the  Kepublic  have  been  prosecuted 
diligently  and  zealously  even  during  the  worst 
periods  of  the  revolution,  and  it  has  been  unani- 
mously conceded  by  foreigners  who  have  travelled 
over  the  various  lines,  government  as  well  as  pri- 
vate ones,  that  their  condition  compares  most 
favourably  with  lines  in  the  United  States — is, 
indeed,  well  up  to  the  standard  in  such  matters. 
Bridges  have  been  rebuilt,  tracks  relaid  and  re- 
ballasted,  and  except  for  the  presence  of  an  occa- 
sional pile  of  bent  and  twisted  rails  or  of  iron 
work  from  burned  cars  by  the  side  of  the  track, 
one  might  well  believe  he  were  travelling  over  one 
of  the  best  roads  in  the  United  States.  It  is  true, 
many  stations  were  burned  during  the  troubles, 
but  as  a  rule  these  were  of  the  poorer  class.  The 
fine  edifices  at  Ciudad  Juarez,  Chihuahua,  Hermo- 
sillo,  Saltillo,  San  Luis  Potosi,  Queretaro,  Guada- 
lajara, Colima,  Vera  Cruz,  Orizaba,  Cordoba, 
Puebla,  one  (a  stone  structure)  at  Monterey,  those 
in  Mexico  City,  as  well  as  many  others,  in  fact 
all  the  best  ones  in  the  Republic,  were  not  injured 
in  the  least.  Most  of  those  that  were  damaged 
have  been  repaired  and  constant  work  in  this  di- 
rection is  being  prosecuted.  All  these  facts  are 
well  known  to  travellers  in  the  Republic  and 
should  have  been  known  to  the  Post's  correspon- 
dent, as  they  are  apparent  to  all. 

So,  too,  with  the  rolling  stock.    The  various  rail- 


266  APPENDIX  C 

road  repair  shops  in  all  portions  of  the  Republic 
have  been  busy  for  over  two  years  in  repairing 
engines,  freight  and  passenger  cars,  and  the 
amount  of  work  thus  accomplished  has  been  re- 
markable considering  the  conditions.  The  iron 
work  of  hundreds  if  not  thousands  of  cars  has 
been  utilised  in  the  construction  of  new  ones  and 
the  process  is  going  steadily  forward.  Loco- 
motives that  had  been  wrecked  or  temporarily 
disabled  have  been  put  in  commission  by  the  score, 
and  the  repair  shops  at  all  the  railway  centres  are 
kept  fully  occupied  with  the  work,  as  they  have 
been  continuously  since  the  restoration  of  peace 
and  as  rapidly  as  the  lines  were  again  controlled 
by  the  Government. 

The  foregoing  are  well  Jmown  facts  easily  sus- 
ceptible of  demonstration  by  personal  observation, 
yet  the  Post  correspondent  has  apparently  pre- 
ferred to  repeat  the  allegations  of  antagonists  of 
the  Government  rather  than  seek  proof  himself  at 
first  hand. 

AS  TO  RECOGNITION 

Fully  as  surprising  is  the  statement  that  the 
United  States  and  the  Allies  have  not  recognised 
the  present  government  of  Mexico  as  a  de  jure  one, 
and  "that  their  ambassadors  and  ministers  are 
not  at  this  writing  (some  time  in  September  from 
all  appearances)  accredited  to  the  de  jure  gov- 
ernment. 

The  Government  of  Mexico  was  recognised  by 


THE    RUINED   RAILWAY    DEPOT    AND    FREIGHT    CARS    AT 
MONTEREY.      GENERAL   VILLA'S   OFFERING   UPON 
HIS   RETREAT  FROM   THE  CITY 


A   TYPICAL   MEXICAN   RAILWAY   TRAIN — FREIGHT, 
PASSENGER  AND  ARMED  GUARD  COMBINED 


APPENDIX  C  267 

the  United  States  Government  as  a  de  jure  govern- 
ment in  March  last  and  has  since  that  date  been 
so  regarded. 

NEWS  NOTES  FROM  MEXICAN  NEWS  BUREAU,  613  RIGGS 

BLDG.,  WASHINGTON,  THURSDAY,  OCTOBER  25, 

1917 

Some  Facts  About  Mexican  Railways 

Rolling  Stock  of  All  Kinds  Now  Equal  to  Pre- 

Eevolution  Days — Official  Statements 

on  the  Subject. 

An  interesting  light  is  thrown  upon  statements 
recently  made  in  the  Saturday  Evening  Post  and 
also  in  the  Mining  and  Scientific  Press  of  San 
Francisco  concerning  the  condition  of  the  rail- 
ways in  Mexico,  which  are  far  from  the  truth  as 
will  be  shown.  Great  stress  is  laid  by  both  pub- 
lications upon  the  alleged  wholesale  destruction  of 
engines  and  cars  during  the  Revolution  and  upon 
what  is  claimed  to  be  a  present  shortage  of  roll- 
ing stock. 

The  last  annual  report  of  the  National  Railways 
of  Mexico,  made  in  1916,  shows  the  following 
facts : 

In  1913  before  there  had  been  any  destruction 
of  consequence  there  were  435  passenger  coaches 
of  broad  gauge  and  118  of  narrow  gauge.  In 
1916  there  were  414  broad  gauge  and  101  narrow 
gauge — or  a  loss  of  but  21  and  17  respectively. 


268  APPENDIX  C 

In  1913  there  were  16,661  freight  cars  of  broad 
gauge  and  1,831  of  narrow  gauge.  In  1916  there 
were  13,222  of  broad  gauge  and  1,396  of  narrow 
gauge — a  loss  of  3,439  of  the  one  and  434  of  the 
other. 

In  1913  there  were  635  broad  gauge  locomotives 
and  94  narrow  gauge.  In  1916  there  were  596  of 
the  broad  gauge  and  83  of  the  narrow — a  loss  of 
83  and  11  respectively. 

Since  the  date  of  this  report  large  additions 
have  been  made  to  the  rolling  stock  of  all  kinds, 
by  repair,  construction  and  purchase.  Further  ad- 
ditions are  constantly  being  made. 

General  Agent  De  Hoyos,  who  represents  the 
Constitutionalist  railways  in  New  York,  is  respon- 
sible for  the  statement  that  within  the  last  six 
months  there  have  been  purchased  600  freight 
cars,  80  passenger  cars  and  sixty  locomotives. 
Three  thousand  cars  are  now  under  repair  in  the 
company's  own  shops,  which  when  completed  will 
bring  the  equipment  practically  to  the  same  point 
as  in  1913 — in  fact,  it  is  larger  so  far  as  regards 
locomotives  and  passenger  coaches,  and  but  a 
trifle  less  in  regard  to  freight  cars. 


In  replying  to  these  charges  one  must  consider 
the  fundamental  inaccuracy  contained  therein,  that 
is,  that  many  of  the  railway  lines  which  the  pres- 
ent government  are  operating  do  not  belong  to 
the  government  at  all.  The  Constitutionalist  gov- 


APPENDIX  C  269 

eminent  "intervened,"  or  confiscated  this  prop- 
erty and  has  been  operating  it  for  several  years 
without  paying  the  owners  and  investors  one  cent 
of  dividend.  This  is  very  much  like  the  situation 
in  Mexico  City  with  regard  to  the  Street  Eailways. 
Until  this  summer  they  were  operated  as  confis- 
cated property  by  the  government,  contrary  to 
all  principles  of  international  law.  So  when  the 
Mexican  News  Notes  speaks  about  the  "wonder- 
ful" progress  which  the  government  is  making  it 
is  necessary  for  the  reader  to  remember  that  some 
of  these  railroad  lines  belong  to  private 
individuals,  not  to  the  Mexican  Government. 

With  regard  to  the  statement  about  work  which 
has  been  done  on  the  railroads  I  may  say  that 
President  Carranza  last  summer  authorised  an 
American  railroad  expert,  a  personal  friend  of  his, 
to  travel  throughout  the  country  and  investigate 
the  railroad  situation.  In  a  confidential  report 
this  official  said  that  there  were  4,000  destroyed 
freight  cars  throughout  the  Eepublic  and  that  be- 
cause of  a  shortage  of  materials  repairs  could  not 
be  made  until  the  materials  were  imported  from 
the  United  States. 

In  the  Monterey  railroad  yards  there  are  400 
skeletons  of  freight  cars  destroyed  during  the 
revolution  and  not  one  of  them  has  been  touched. 

During  my  stay  in  Mexico  I  travelled  from 
Laredo,  Texas,  to  Mexico  City;  from  Mexico  City 
to  Monterey  and  from  Monterey  to  Tampico  by 
railroad.  During  the  first  day's  trip  our  train  was 


270  APPENDIX  C 

held  up  five  hours  because  of  a  destroyed  bridge 
which  was  put  together  so  poorly  that  four  weeks 
later  when  I  returned  this  way  the  engineer  had 
to  stop  the  train  to  test  the  bridge  before  pulling 
the  passenger  train  across. 

Eailroad  traffic  between  Vera  Cruz  and  Mexico 
City  is  so  poor  that  when  I  was  ready  to  leave 
the  capital  for  Vera  Cruz  a  member  of  Mr.  Car- 
ranza's  cabinet  told  me  to  go  north  to  Tampico 
because  the  line  to  Vera  Cruz  was  not  "safe." 

The  railway  line  between  Tampico  and  Mexico 
City  is  not  running  because  the  bandits  have 
destroyed  some  sections  and  because  the  Mexican 
Government  cannot  protect  the  trains. 

The  only  repair  work  which  is  going  on,  so  I 
was  informed  by  American  officials  and  other  busi- 
ness men  in  the  Eepublic,  is  that  under  the  direc- 
tion of  foreign  corporations. 

In  Monterey  the  Manager  of  the  large  Five 
Million  Dollar  Steel  mills  told  me  that  he  had  to 
rebuild  all  locomotives  and  freight  cars  which  his 
corporation  used  because  the  Mexican  Government 
was  not  in  a  position  to  do  so.  He  showed  me 
about  twelve  freight  cars  in  his  shops  which  were 
being  repaired  and  explained  that  under  his  con- 
tract with  the  government  he  had  exclusive  use  of 
these  cars  for  two  years.  I  saw  in  his  repair  shops 
not  less  than  five  locomotives  which  his  workmen 
were  repairing.  He  stated  that  he  had  not  only  to 
rebuild  the  rolling  stock  but  had  to  supply  engi- 
neers, firemen  and  brakemen  to  operate  the  trains. 


APPENDIX  C  271 

The  American  Smelting  and  Refining  Company 
owns  and  operates  all  the  trains  it  uses  in  Mexico 
for  hauling  ores  and  metals.  It  had  to  do  this  be- 
cause the  Mexican  Government  was  not  in  a  posi- 
tion to  furnish  it  with  the  necessary  rolling  stock 
to  take  care  of  its  shipping.  In  Tampico  the  for- 
eign oil  companies  are  using  their  own  oil  cars  to 
ship  their  product  in  Mexico,  and  because  of  the 
bad  condition  of  the  Mexican  railways,  because  of 
the  delays,  etc.,  the  companies  are  now  considering 
the  construction  of  an  automobile  road  from  Tam- 
pico to  the  Texas  border,  or  the  laying  of  a  pipe 
line. 

Reports  made  to  the  American  Consular  Office 
at  Monterey  show  that  shipments  are  being  held 
up  not  days  but  weeks  and  months  because  of  a 
lack  of  rolling  stock. 

If  the  Mexican  railways  are  "indeed  well  up  to 
the  standard  (of  the  United  States)  in  such  mat- 
ters" it  would  be  interesting  to  know  why  the 
Pullman  company  will  not  permit  any  of  its  cars 
to  cross  the  Rio  Grande.  It  would  be  interesting, 
too,  to  know  why  none  of  the  American  railway 
companies  will  permit  either  passenger  or  freight 
cars  to  go  into  Mexico.  When  the  revolutions  be- 
gan the  Pullman  company  withdrew  practically 
every  car  from  the  Mexican  service.  A  few  were 
"caught"  in  remote  sections  of  the  country  and 
these  are  now  being  used  as  private  cars  by  Mex- 
ican officials. 

If  conditions  in  the  United  States  and  Mexico 


872  APPENDIX  C 

with  regard  to  the  railways  are  so  similar  one 
might  ask  the  editor  of  the  Mexican  News  Notes 
why  it  is  that  in  Mexico  federal  troops  are  sent 
as  escorts  on  all  railway  lines  to  protect  the  pas- 
sengers and  the  property?  If  conditions  are  so 
normal  why  did  the  government  send  a  special 
troop  train  to  escort  Ambassador  Fletcher  to  the 
capital  and  why  did  this  special  train,  with  a  heavy 
guard,  run  only  during  the  day?  Why,  too,  are 
most  of  the  trains  running  between  Mexico  City 
and  Laredo  detained  at  night  within  some  railway 
station  f 


APPENDIX  D 

THE  PROPOSED  AMERICAN  CHAMBER  OF  COMMERCE 


When  I  was  in  Mexico  City  the  American  busi- 
ness men  were  discussing  the  advisability  of  or- 
ganising a  Chamber  of  Commerce.  In  the  Chapter 
on  "The  Last  Spy  Offensive"  I  mentioned  what 
a  contrast  there  was  between  the  German  intrigue 
in  Mexico  and  the  American  business  methods.  I 
am  adding  the  official  statement  of  the  American 
committee  so  that  the  reader  may  see  what  the 
full  plans  of  the  Americans  are.  In  so  doing  I 
wish  to  add  that  contrary  to  the  oft  repeated 
charges  in  the  United  States  that  all  Americans 
and  foreigners  in  Mexico  were  exploiting  the  peo- 
ple I  found  that  those  Americans  in  Mexico  to-day 
are  the  same  high  type  men  who  are  a  credit  to 
the  United  States  business  world.  I  met  during 
my  stay  in  Mexico  only  one  pessimistic  American 
merchant  who  lamented  the  disappearance  of  the 
"good  old  days"  when  President  Diaz  permitted 
the  foreigners  to  do  about  as  they  pleased.  He, 
the  Pessimist,  advocated  intervention  in  order 
that  these  "good  days"  might  return,  forgetting 
perhaps  that  if  the  United  States  ever  intervened 
in  Mexico  the  methods  would  not  be  German. 

273 


APPENDIX  D 

The  American  folder  runs  as  follows  : 


PEOJECT  FOE  AN 

AMEEICAN  CHAMBEE  OF  COMMERCE 
OF  MEXICO 

A  committee  has  decided  to  submit  to  American 
residents  and  American  firms  established  or  inter- 
ested in  Mexico  a  proposal  for  the  formation  of 
an  American  Chamber  of  Commerce  in  Mexico 
City. 

It  is  proposed  to  establish  a  purely  commercial 
and  non-political  organisation  which  will  foment 
the  friendly  trade  relations  between  Mexico  and 
the  United  States,  and  which,  in  co-operation  with 
the  representatives  of  the  United  States  in  Mex- 
ico, will  be  able  to  initiate  as  active  a  campaign 
for  American  trade  as  is  now  being  carried  on  by 
organisations  of  other  countries  for  their  own 
interests. 

To  establish  a  nucleus  upon  which  all  American 
interests  may  centre  and  present  a  united  front 
not  only  toward  internal  problems  of  trade,  but 
also,  through  intercourse  with  chambers  of  com- 
merce in  the  United  States,  toward  the  attitude  of 
a  great  body  of  American  manufacturers  who,  by 
reason  of  misinformation  and  by  inaction,  are  im- 
periling their  hold  on  a  market  which  under  all 
economic  laws  should  be  inalienably  theirs. 

To  form  a  clearing  house  wherein  business  of- 
fered to  firms  outside  of  their  particular  line  may 


APPENDIX  D  275 

be  promptly  brought  to  the  attention  of  such  firms 
as  are  equipped  to  handle  the  same. 

To  establish  headquarters  in  Mexico  City  for 
local  organisation  and  for  affiliation  with  cham- 
bers in  the  United  States  and  with  American 
chambers  in  the  cities  of  Latin  America  and 
Europe. 

To  offer  membership  to  American  firms  and 
American  residents  in  the  Kepublic  of  Mexico  and 
in  the  United  States. 

To  secure  correspondents  throughout  Mexico 
and  especially  in  localities  that  do  not  afford  the 
services  and  co-operation  of  American  consular 
officers. 

To  compile  information  thus  gathered  and  to 
distribute  or  utilise  it  for  the  benefit  of  members 
and  for  promotion  of  American  trade  and  indus- 
try; applying  such  information  to  inquiries  from 
the  United  States  and  helping  non-residents  to 
discriminate  between  desirable  and  undesirable 
enterprises. 

To  publish  a  periodical  bulletin  and  market  re- 
porter, carrying  paid  advertisements,  and  ulti- 
mately to  establish  and  let  space  for  exhibits  both 
of  American  manufactures,  and  of  the  products  of 
Mexico.  To  take  up  such  other  activities  as  the 
members  may  determine. 

With  these  objects  in  view  Americans  are  in- 
vited to  join  in  organising  an  American  Chamber 
of  Commerce  of  Mexico. 

The  State  Department  at  Washington,  on  being 


276  APPENDIX  D 

informed  of  the  plan  to  establish  a  chamber  of 
commerce  here,  has  authorised  its  consuls  through- 
out Mexico  to  co-operate  and  to  assist  the  chamber 
under  the  supervision  of  its  consuls  general. 

PEOPOSED  PLAN  OF  ORGANISATION 
(Subject  to  Change  by  the  Subscribing  Members) 

DIRECTORS  AND  OFFICERS 

A  board  of  fifteen  directors  to  be  elected  by  the 
members  of  the  chamber  and  to  have  general 
charge  of  its  affairs.  Of  these,  five  to  be  elected 
for  one  year,  five  for  two  years  and  five  for  three 
years. 

The  officers  of  the  chamber  shall  be  selected  by 
the  board  and  shall  consist  of  a  president,  two 
vice-presidents,  treasurer  and  secretary.  All  ex- 
cept the  secretary  must  be  members  of  the  board. 
Honourary  president  and  vice-presidents  may  also 
be  chosen  by  the  board. 

An  executive  committee  shall  be  designated  by 
the  board  from  its  number.  The  board  shall  deter- 
mine various  committees  to  be  established,  appoint 
the  members  thereof  and  supervise  their  work. 

COMMITTEES 
Committees  are  recommended  as  follows: 

1. — Executive,  4. — Publicity, 

2. — Membership,  5. — Constitution, 

3. — Finance,  6. — Entertainment, 


APPENDIX  D  277 

7. — Trade,  10. — Transportation, 

8. — Industrial,  11. — Agriculture, 

9. — Mining,  12. — General  Development. 

Some  committees  would  be  of  more  immediate 
importance  than  others,  but  time  would  be  saved 
for  the  future  by  appointing  the  most  of  them  at 
once  and  getting  their  work  started.  Interest 
among  merchants,  manufacturers  and  financiers  in 
the  United  States  toward  Mexico,  although  latent 
now,  is  widespread  and  will  become  active  as  soon 
as  the  European  war  closes  or  the  situation  clears 
further  in  Mexico. 

LOCATION 

Suitable  rooms  will  be  secured  and  kept  open 
daily,  making  this  a  common  meeting  place  for 
members  and  visitors,  with  facilities  for  reading 
and  writing.  Space  could  be  provided  and  let  for 
foreign  and  native  exhibits  and  samples. 

MEMBERSHIP  AND  DUES 

The  membership,  limited  to  Americans,  to  be 
made  up  of  these  classes : 

Members  Entrance  Fee  Quarterly  Dues  Vote 

Active  /  Corporate 100  pesos  25        pesos  2 

1  Individual 60       *  12.50       «  1 

Associate  Resident 25       «  6.25       «  None 

Associate           /Corporate 50       *  12.50       "  None 

Non-Reaident  \  Individual 25       *  6.25       •  None 

Active  members  may  be  either  resident  or  non- 
resident. 


278  APPENDIX  D 

A  resident  individual  or  firm  engaged  in  busi- 
ness that  employs  a  capital  of  more  than  10,000 
pesos  shall  be  classed  as  a  corporate  member  in 
regard  to  entrance  fee,  dues  and  votes. 

A  local  firm  or  company  with  not  more  than 
10,000  pesos  capital  may  be  classed  as  an  indi- 
vidual active  member  with  respect  to  entrance 
fee,  dues  and  vote. 

Americans  residing  in  the  Federal  District  and 
not  engaged  in  business  may  enter  either  as  active 
individual  members  or  associate  resident  members. 

Only  active  members  shall  serve  on  the  board 
and  on  committees  and  be  entitled  to  vote  at  meet- 
ings of  the  chamber. 

Representation  of  corporate  members  at  formal 
meetings  must  be  by  Americans. 

Mexican  corporations  owned  and  controlled  by 
Americans  shall  be  considered  American  corpora- 
tions. 

Eespectfully  submitted, 

BY  THE  COMMITTEE 

H.  P.  Lewis  K.  M.  Van  Zandt,  Jr. 

H.  T.  Oliver  M.  V.  Stewart 

H.  A.  Basham  W.  L.  Vail 

F.  J.  Dunkerley  Ealph  Smith 

Carl  Holt  Smith  A.  B.  Mohler 

S.  W.  Rider,  Chairman 
Consul  General,  G.  A.  Chamberlain, 

Advisory  Member. 
September,  1917. 


APPENDIX  E 

PRESIDENTIAL,  ELECTION 


The  Mexican  Review,  published  at  Washington, 
printed  the  following  statement  regarding  the  elec- 
tion which  was  held  after  the  adoption  of  the  new 
Constitution. 

Herewith  are  given  the  complete  returns  of  the 
Presidential  election  held  on  March  llth,  can- 
vassed by  Congress  and  announced  as  the  official 
figures. 

In  every  instance  the  ballots  were  blank,  a  space 
being  left  for  the  voter  to  inscribe  the  name  of  his 
favourite  candidate.  As  will  be  seen,  several  thou- 
sand votes  were  cast  for  others  than  President 
Carranza,  Generals  Gonzales  and  Obregon  leading 
in  this  respect.  Many  others  received  smaller 
numbers  of  votes,  including  General  Alvarado  and 
other  prominent  revolutionary  leaders. 

The  figures  follow  on  page  280. 

CARKANZA  OFFICIALLY  DECLARED  PRESIDENT 

After  canvassing  the  returns  of  the  election 
from  the  various  States,  the  Chamber  of  Deputies 
adopted  a  resolution  in  the  following  words,  an- 

279 


280 


APPENDIX  E 

States  Carrauza       Gonzales 


Obregon 


Aguascalientes      7,394  28  17 

Colima 4,874  27  19 

Coahuila 26,841  52  219 

Campeche 2,061  6  3 

Chihuahua 5,883  2  57 

Chiapas 14,277  3 

Durango 6,816  17  202 

Guanajuato 91,226  3,328  708 

Guerrero 9,825              

Jalisco 34,135  28  52 

Mexico 52,513.  1,676  520 

Michoacan 33,627    «  1,515  120 

Nuevo  Le6n 33,166  8  10 

Oaxaca 60,964  138  73 

Puebla 57,519  1,215  193 

Queretaro 14,754  491  111 

S.  L.  Potosi 22,638  71  51 

Sinaloa IVIO  24  169 

Tabasco 6,lb,  2  5 

Hidalgo 19,949  70  32 

Tlaxcala 21,724  176  53 

Yucatan 25,717  12  14 

Zacatecas 20,732  67  66 

VeraCniz 39,455  276  172 

Sonora 20,667  6  367 

Tepic 8,856-  2  9' 

Baja  California 3,056             °" 

Quintana  Roo 345  12 

Distrito  Federal 70,003  1,773  553 

Totals 797,305  11,615  4,008 

The  total  number  of  votes  cast  was  812,928. 


nouncing  officially  that  in  the  election  held  on 
March  llth  the  Citizen  Venustiano  Carranza  re- 
ceived 797,305  votes,  against  various  other  candi- 
dates with  a  much  inferior  number  of  ballots.  The 
resolution  was  unanimously  approved.  It  reads 
as  follows : 

The  Chamber  of  Deputies  of  the  Twenty- 
seventh  Congress  of  the  Eepublic  of  Mexico,  con- , 
stituted  in  an  Electoral  College  and  in  use  of  the 
rights  and  faculties  conferred  upon  them  by  Sec- 
tion I  of  Article  74  of  the  Political  Constitution 
of  the  Republic,  have  decreed,  after  a  careful  ex- 


» 


EL  NUEVO  "DON  QUIJOTE" 


El  Yanqui  nuevo  Quijote-- 
Pretende  con  lanza  en  ristre, 
"DESFACER,"  no  lo  inclines 
Sino  "lancear"  a  la  KSFINQE. 

Empeno  iniitil los  "titeres 

Nunca  pueden  con  los  hombres, 
Por  eso  el  "GHARRO"  se  He 

A.  mandi'bula  batiente, 

Y  a  voz  en  cuello  te  dice: 

Oh,  "Quijote  de  Petate,' 

Aunque  ten^as  muchos  rifles, 

Muchos  *d6lares»  y  barcos, 

No  has  depodercon  fa  "ESFINQE1 


